tim wants to buy an apartment that costs $1,750,000 with an 85% ltv mortgage. tim got a 30 year, 3/1 arm with an initial teaser rate of 3.75%. the reset margin on the loan is 300 basis points above 1 year cmt. there are no caps. the index was 1% at the time of origination. tim also had to pay 1 point for this loan. suppose the index rate will remain 1% for the life of the loan. compute the annualized irr for this loan assuming tim will prepay in 5 years.