Question 7 1 pts Assume you borrow an ARM of $120,000 for 30 years. Given initial interest rate-5%, margin-200 basis points, Index rate at EOY1-6%, EOY2-4,5%, an annual rate cap-250 basis points. If the lender charges 3% prepayment penalty AND 3 points upfront, what is the effective interest rate (EAR) if the loan is paid off at the end of year 3? Chint: Use CF function to find IRR) 8.7996 9.25% 8.0396 8,30% 1 Question 8