In Order to Calculate the APR for an ARM,you Must

question 5

Multiple Choice

In order to calculate the APR for an ARM,you must,

• A)Only use the first year's given interest rate
• B)Estimate interest rates over the life of the loan
• C)Assume the worst case scenario and use interest rates at their highest possible point over the life of the loan
• D)Use only the first five year's interest rates because they can easily be estimated and most people only own a property for five years

---

Definitions:

Income-Maintenance Program

Governmental policies designed to provide financial support to individuals or families to ensure a basic level of income and prevent poverty.

Social Insurance

Government-provided insurance, typically funded through taxation, that covers individuals against economic risks (e.g., unemployment, disability).

Poverty Rate

The percentage of a population living below the national poverty line, reflecting the proportion of society facing economic hardship.

In-Kind Transfers

Non-cash benefits provided to individuals, often in the form of goods or services, such as food stamps or housing assistance.