Use the following information to answer the next 4 questions: You are considering an Adjustable Rate Mortgage with the following characteristics: Loan amount: $300,000 Term: 25 years, with monthly payments Index in year 1: 4.0% Index in year 2: 6.5% Margin: 2.0% Adjustment: Annual Periodic cap: 2.0% Lifetime cap: 5.0% Discount points: 2 points What are the monthly payments in the first year? $2,120.33 Index in year 2: 6.5% Margin: 2.0% Adjustment: Annual Periodic cap: 2.0% Lifetime cap: 5.0% Discount points: 2 points What are the monthly payments in the first year? $2,120.33 $1,971.56 $1,842.26 $1,932.90 $1,583.51