Objective: To explore the influence of a fully amortized adjustable rate mortgage on the financial performance of a residential property investment, particularly the IRR. Predicted prime rates are given as follows: Month #1 (Loan Initiation) 2.50% Month #7 2.75% Month #19 3.00% Month #25 3.50% Month #31. 3.75% Month #37. 4.00% Month #49 onward 4.25% 1. Construct a monthly amortization schedule for a $2,000,000, 5-year, 2/1 hybrid adjustable rate mortgage, where the mortgage rate is higher than the prime rate by 1% without caps. Assume the initial loan equals 50% of the property's value, which has a projected 0.3% monthly appreciation rate. 2. Compute the property owner's equity at the end of each month. 3. Compute the IRR for the property owner if the property is sold after 36 months. 4. Compute the IRR for the property owner if the property is sold after 36 months, assuming the owner paid 2 discount points at the closing of the loan