You Currently Have an ARM That Is Charging You 7

question 163

Multiple Choice

You currently have an ARM that is charging you 7% with an index rate of 4%,a margin of 3%,and a periodic annual cap of 3.0%.Assume that rates have now increased by 2% during the last seven months.What rate will your ARM be adjusted to?

• A)will remain at 7% fixed rate
• B)8%
• C)9%
• D)10%
• E)11%

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Definitions:

New Customer

A person who has never previously purchased or used a product or service from a business.

Complement

In probability, it refers to the event not occurring, or the subset of outcomes that are not part of the event of interest.

Complement

In probability theory, the event consisting of all outcomes not in a given event, typically leading to a sum of probabilities equal to one.

Probability

The quantification of an event's likelihood to occur, represented as a number from 0 to 1.