An ARM is made of Sh. 150,000 for 30 years with the following terms: | initial interest of7%; Index being i-year treasury securities; payments reset each year, margin 2%,PMT is capped at 5% increase in any year. Based on estimated forward rates, the index to which the ARM is tied is forecasted as follows Year 2-7%, Year 3-8596, Year 4-4.5% and Year 5-11%. 70. Required: Compute the PMT and loan balances for the five year period. Page 1 of 2