Create the amortization spreadsheet and answer the following questions for a $675,000 10-year adjustable-rate mortgage (ARM) loan that is fully-amortizing and has monthly payments. A teaser rate of 2.4% applies to the mortgage payments and amortization during the first 2 years of the loan. After the second year, the annual interest rate on the loan is equal to the going rate on an index + a margin of 1.7%, subject to an annual interest rate cap of 2.3% and a lifetime interest rate cap of 5.5% over the initial teaser rate. Expectations for the beginning-of-year values for the appropriate index are as follows:

Year	Index
3	2.1%
4	4.7%
5	6.5%
6	1.5%
7	1.9%
8	5.1%
9	6.6%
10	6.0%

**please post spreadsheet with all work shown**

a) Based on these expectations and conditions, what would be the actual interest rates applied to the mortgage payment during years 1 thru 10?

b) What would be the APR on this loan, if held until maturity assuming up-front points of 2.5%?

c) What is the outstanding balance at the end of year 6?