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

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Definitions:

Cognitive Development

refers to the processes by which thinking evolves, including acquiring, processing, and storing knowledge and information.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or otherwise sensed, typically developed in infancy.

Conservation

The principle that certain properties, like volume, mass, and number, remain the same despite changes in the forms of objects, in cognitive development.

Centration

In Piaget’s theory, the tendency of a young child to focus only on one feature of an object while ignoring other relevant features.