Year 3 Index is not required.

Find the interest rate and ending balance for year 2: Margin is 2.75 percent Index for year 1 is 2.50%; Index for year 2 is 2.75%; Teaser - 4.0%; Periodic cap, 1.00%, overall cap, 5.00 %. Assume the cap applies to the teaser rate. ARM Loan Assumptions Caps Initial Loan amount $75,000 Periodic (Annual): 1.00% Term: 30-year (360 months) Overall: 5.00% Margin: 2.75% (275 basis points) Beginning of Year 1 2 3 Index Teaser Rate Interest Rate Loan balance Months remaining Monthly Payment Find the interest rate and ending balance for year 2: Margin is 2.75 percent Index for year 1 is 2.50%; Index for year 2 is 2.75%; Teaser - 4.0%; Periodic cap, 1.00%, overall cap, 5.00 %. Assume the cap applies to the teaser rate. ARM Loan Assumptions Caps Initial Loan amount $75,000 Periodic (Annual): 1.00% Term: 30-year (360 months) Overall: 5.00% Margin: 2.75% (275 basis points) Beginning of Year 1 2 3 Index Teaser Rate Interest Rate Loan balance Months remaining Monthly Payment