A $20-$year $2/1$ ARM uses the SOFR as the index and charges a margin of $2\%.$

The rate caps are $\frac{3}{1}\frac{?}{8}.$

At loan origination, SOFR equals $3\%.$

At the end of the first year, SOFR equals $4\%.$

At the end of the second year, SOFR equals $4\mathrm{.}5\%.$

At the end of the third year, SOFR equals $5\%.$

At the end of the fourth year, SOFR equals $6\mathrm{.}5\%.$

At the end of the fifth year, SOFR equals $6\%.$

The interest rate that applies for the $53$th monthly payment equals $\%$

$7\mathrm{.}5$

$8\mathrm{.}5$

$$

$8$

$8$