Suppose You Have a 30-Year ARM with a Balance at the EOY2

question 35

Multiple Choice

Suppose you have a 30-year ARM with a balance at the EOY2 of $139,632 and a monthly payment for year 3 of $1239.88.If the margin is 2.50,what is the value of the index to produce this payment?

• A) 10.00%
• B) 7.50%
• C) 12.50%
• D) 7.64%
• E) cannot be determined

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Definitions:

Sequential Search

Sequential Search is a straightforward search algorithm where each item in a list is checked sequentially until the target value is found or the list ends.

Large Lists

Large lists refer to collections of data items that are significantly large in size and may require efficient algorithms for searching, sorting, or manipulating the data.

Efficient

Referring to a method or process that achieves its objectives with minimal waste of time, resources, or energy.

List

An ordered collection of items where each item can be accessed by an index.