What is the payment on the following ARM in the third year? Loan: $400,000; Margin 2%; Amortization term: 30years; Teaser rate: 2.5% for first year; periodic cap = 1% which also applies to the teaser rate. The underlying index at each date t=0, 1yr, 2yr, and 3-30yr is: 1%, 2%, 2.5% and 3%, respectively