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

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Definitions:

Contact

An electrical component used to complete or interrupt an electrical circuit.

Jog Pushbutton

A control button on a machine that, when activated, causes the machine to operate at a low speed for short periods, aiding in precise positioning.

Momentary Contact

A switch or relay contact that makes or breaks connection only while being actuated, returning to its original state afterward.

Circuit

An electrical pathway that allows for the flow of electrons, consisting of various electrical components.