An ARM for $500,000 is made with an initial interest rate of 5% for the first year. The index interest rate in year 2 is 6% while the margin is 2%. There is also a periodic annual cap rate of 2%. The mortgage is fully amortizing, has a maturity of 30 years, and payments will be made monthly. Calculate the mortgage payment in year 2. 0 $3,311.07 $3,277.43 O $3,645.14 0 $1,986.64 An ARM for $500,000 is made with an initial interest rate of 5% for the first year. The index interest rate in year 2 is 6% while the margin is 2%. There is also a periodic annual cap rate of 2%. The mortgage is fully amortizing, has a maturity of 30 years, and payments will be made monthly. Calculate the mortgage payment in year 2. 0 $3,311.07 $3,277.43 O $3,645.14 0 $1,986.64