You Have Taken Out a $350,000, 3/1 ARM

question 22

Multiple Choice

You have taken out a $350,000, 3/1 ARM. The initial rate of 6.0% (annual) is locked in for 3 years. Calculate the outstanding balance on the loan after 3 years. The interest rate after the initial lock period is 6.5%. (Note: the term on this 3/1 ARM is 30 years)

• A) $2,098.43
• B) $2,183.95
• C) $336,294.25
• D) $347,901.57

Understand the significance of ABA approval for paralegal education programs.

Understand the impact of externalities on market efficiency and socially optimal levels of production and consumption.

Identify the concepts of marginal private cost, marginal external cost, and marginal social cost.

Analyze the effects of pollution on long-run industry dynamics and market inefficiencies.

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Definitions:

Phyllis Schlafly

A conservative American activist known for her opposition to the women's liberation movement and her successful campaign against the ratification of the Equal Rights Amendment.

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A landmark 1973 Supreme Court case in the United States that legalized abortion nationwide, establishing a woman's legal right to an abortion.

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Financial support provided by the federal government to states, organizations, or individuals for specific projects or purposes.

Reaganomics

Popular name for President Ronald Reagan’s philosophy of “supply side” economics, which combined tax cuts with an unregulated marketplace.