Consiler a cee$-$year, $$150,000$ ARM with a $30-$year anoelinatios period. The indes rate is currently $3\mathrm{.}75$ percent and you colimate that it will increase by $25$ p $(0\mathrm{.}25\%)$ calcy you for fie folloing $2$ years. The fived magin is $225$ bp $(2$:$2514),$ but the lender is effering a teaser rale ef $5$ pervent fire the firat year of the mortgage.

Suppose that the ARM has a $1$ percent aresal samswer cap and s $6$ percent everall cap. What is the evelot rele for the second your and the remaining lose labace at the end effer free year fin other word.

$6\mathrm{.}25\%$;$$147,786\mathrm{.}95$

$64.444589622$

$6\%$; $$147,786\mathrm{.}95$

$6354$;$944583622$