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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