Lary is considering an ARM loan offered by a local lender. The loan amount is $300,000. The term of the loan is 10 years. The index today is 2%. The margin on the loan is 2%. 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. The loan requires 2 points at origination. The prevailing rate in the market for similar FRM loans is 6.25%. Assume the following forecast of index rates. What is the amount of the payment due in each of months 37 through 48? Hint: Don't reinvent the wheel to answer this question. Look for resources in the Modules that can greatly reduce the time required to calculate the answer. Year o 1 2 3 Index Rate Forecast 2.00% 2.25% 2.50% 3.10% 4.15% 5.50% 5.50% 7.50% 8.00% 7.10% 4. 5 6 7 8 9 Lary is considering an ARM loan offered by a local lender. The loan amount is $300,000. The term of the loan is 10 years. The index today is 2%. The margin on the loan is 2%. 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. The loan requires 2 points at origination. The prevailing rate in the market for similar FRM loans is 6.25%. Assume the following forecast of index rates. What is the amount of the payment due in each of months 37 through 48? Hint: Don't reinvent the wheel to answer this question. Look for resources in the Modules that can greatly reduce the time required to calculate the answer. Year o 1 2 3 Index Rate Forecast 2.00% 2.25% 2.50% 3.10% 4.15% 5.50% 5.50% 7.50% 8.00% 7.10% 4. 5 6 7 8 9