how do you solve this problem ?

An ARM is made for $195,000 for 30 years with the following terms: Initial interest rate =7 percent Index =1-year Treasuries Payments reset each year Margin =2 percent Interest rate cap = None Payment cap =5 percent increase in any year Discount points =2 percent Fully amortizing; however, negative amortization allowed if payment cap reached Based on estimated forward rates, the index to which the ARM is tied is forecasted as follows: Beginning of year ( BOY)2=7 percent; (BOY)3=8.5 percent; (BOY)4=9.5 percent; (BOY)5=11 percent. Required: 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. An ARM is made for $195,000 for 30 years with the following terms: Initial interest fate =7 percent Index =1-year Treasuries Payments reset each year Margin =2 percent Interest rate cap = None Payment cap =5 percent increase in any year Discount points =2 percent Fully amortizing: however, negative amortization allowed if payment cap reached Based on estimated forward rates, the index to which the ARM is tied is forecasted as follows. Beginning of year (BOY)2=7 percent: (BOY)3=8.5 percent; (BOY)4=9.5 percent; (BOY)5=11 percent. Required: o. Compute the payments and loan balances for the ARM for the five-year period. b. Compute the yieid 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 fiveryear period. (Do not round intermediate calculations. Round "Payments" to 2 decimal places and "Loan Balance" to the nearest dollar amount.)