Q4: fill-in-the-blanks Fill in ALL 5 rate fields based on the information provided. Pay close attention START to the Index and Comments columns. Include decimal point with your answers. Ex. 5.0 Use the cap information to determine what the fully indexed rate should be (R=I+M). Background information: 5/1 ARM 2/1/5 cap 15 year loan YEARS MARGIN INDEX CAPS RATE 2% 3.5% n/a 5.5 % 1-5 2% n/a n/a 2% 6 2% 5% (initial) 196 7 2% 20 3.5% 2% 95 5% 2016 2% 76 7% (periodic) 19 (periodic) 1% (periodic) COMMENTS The caps do not yet apply as the rate is being established. 5.5 % Rate remains fixed for the first 5 years ?.? % Index increases from 3.5% to 5% ?.? % The index rate drops from 5% to 3.5% ?.? % Index increases from 3% to 5% ?.? % Index increases from 5% to 7% ?.? % Index jumps from 7% to 12% 10 2% 12% 1% (periodic) 11-15 2% Varies See Comment n/a Rates will vary remainder of loan. They will be no higher than 8.5% +2% = 10.5% and no lower than the 2% margin. SUBMIT