A mortgage company offers borrowers a 4% annual interest rate on the one-year ARM that is amortized for 30 years. The index rate is forecast to be 5%for next yearand the margin on this loan is 2%. The annual interest rate adjustment cap is 2%. What is the adjusted interest rate for the second year?What are the monthly payments for year 1 and 2if $200,000 is borrowed? (Remember to use the balance as the new PV for 2ndyear.)