Use the Below Payoff Table with Four Mortgage Options to Answer

question 67

Multiple Choice

Use the below payoff table with four mortgage options to answer the following question(s) .
-Which of the following decisions has the best average payoff?

• A)1-year ARM
• B)3-year ARM
• C)5-year ARM
• D)30-year fixed

---

Definitions:

Retina

The light-sensitive layer of tissue at the back of the inner eye that converts light images into electrical signals sent to the brain.

Peripheral Vision

The ability to see objects and movement outside of the direct line of vision.

Cones

Specialized cells in the retina of the eye responsible for color vision.

Saturated Color

A color that is fully intense and vivid, without any addition of white, black, or gray, resulting in the purest form of the color.