Assume you borrow an ARM of $120,000 for 30 years. Given initial interest rate=5%, margin-200 basis points, index rate at EOY1-6%, EOY2=4.5%, an annual rate cap=250 basis points. If the tender charges 3% prepayment penalty AND 3 points upfront , what is the effective interest rate (EAR) If the loan is paid off at the end of year 3? (hint: use CF function to find IRR) 9.25% O 8.03% 8.30% 8.79%