Consider the following information and answer each of the questions below using arithmetic, algebra, and Excel functions as appropriate. Lary is considering an ARM loan offered by a local lender. The loan amount is $385,000. The term of the loan is 10 years. The index today is 1.1%. The margin on the loan is 3%. The teaser (first year only) is 1%. The composite rate adjusts annually and is subject to annual and lifetime caps of 2% and 5%. The loan does not provide for negative amortization nor does it provide floors. Assume the following forecast of index rates. The prevailing rate in the market for similar FRM loans is 5.25%. Make no changes to this Excel workbook other than entering the information needed in the yellow and pink highlighted cells and your answer calculation in the green highlighted cells. Only the green highlighted cells will be graded. Do not round intermediate calculations (let Excel store all decimal values).

Please provide the answer with the excel function thank you

Year 0 1 2 3 4 5 6 7 8 Index Rate Composite Forecast Rate 1.10% 2.10% 2.25% 4.10% 2.50% 5.50% 3.10% 6.00% 4.00% 6.00% 7.50% 6.00% 5.50% 6.00% 7.50% 6.00% 8.00% 6.00% 4.10% 6.00% 9 Payment 1. What is the payment in months 1 through 12? Loan Balance Loan Term (years) 10 Payments per Year 12 Index Margin Annual cap Lifetime cap Teaser Composite Rate Balance $350,032.27 2. What is the balance at the EOY 1? Payment $3,559.79 Composite Rate 2.10% Loan Term (years) 10 Payments per Year 12 Payment $3,881.17 3. What is the payment in months 13 through 24? Loan Balance $350,032.27 Loan Term (years) 9 Payments per Year 12 Composite Rate 4.10% Year 0 1 2 3 4 5 6 7 8 Index Rate Composite Forecast Rate 1.10% 2.10% 2.25% 4.10% 2.50% 5.50% 3.10% 6.00% 4.00% 6.00% 7.50% 6.00% 5.50% 6.00% 7.50% 6.00% 8.00% 6.00% 4.10% 6.00% 9 Payment 1. What is the payment in months 1 through 12? Loan Balance Loan Term (years) 10 Payments per Year 12 Index Margin Annual cap Lifetime cap Teaser Composite Rate Balance $350,032.27 2. What is the balance at the EOY 1? Payment $3,559.79 Composite Rate 2.10% Loan Term (years) 10 Payments per Year 12 Payment $3,881.17 3. What is the payment in months 13 through 24? Loan Balance $350,032.27 Loan Term (years) 9 Payments per Year 12 Composite Rate 4.10%