Adjustable Rate Mortgage Excel Assignment Build an amortization schedule for the loan in this assignment.

Consider the following information and answer each of the questions below using arithmetic, algebra, and Excel functions as appropriate. Larz is

considering an ARM loan offered by a local lender. The loan amount is $$585,000.$ The term of the loan is $10$ years. The margin on the loan is

$3\%.$ The teaser $($first year only$)$ is $1\%.$ The composite rate adjusts annually and is subject to annual and lifetime caps of $2\%$ and $5\%,$

respectively. The loan does not provide for negative amortization nor does it provide floors. Assume the following forecast of index rates. The

prevailing rate in the market for similar FRM loans is $5\mathrm{.}25\%.$ Make no changes to this Excel workbook other than entering information needed

in the yellow and pink highlighted cells and your answer calculation in the green highlighted cells. Only the green highlighted cells will be graded.

Do not round intermediate calculations $($let Excel store all decimal values$).$