Assume that a lender offers a $30-$year, $$140,000$ adjustable rate mortgage $($ARM$)$ with the following terms:Index $=$ one$-$year Treasuries

Payments reset each year

Margin $=2$ percent

Interest rate cap $=1$ percent annually; $3$ percent lifetime

Discount points $=2$ percentRequired:

a$.$ Compute the payments and loan balances for the ARM for the five$-$year period.

b$.$ Compute the yield for the ARM for the five$-$year period.

Complete this question by entering your answers in the tabs below.

Compute the payments and loan balances for the ARM for the five$-$year period.

Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar.