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

question 5

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

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