Given the following Adjustable Rate Mortgage (ARM): Loan amount: $100,000 Term: 20 years, monthly payment Discount point: 0 Origination fee: $8,000 Teaser rate: 7.5% Margin: 225 basis points Rate caps: 2.5% annually, 6% lifetime Market Index: EOY 1 2 Index 8.6 % 9.5% What is the monthly payment of the 2nd year? O1007.36 O 805.59 O959.25 O897.25 5 3 10.5% 11.5% 10.5%