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

question 16

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.