Elsieham9ikolepeavi
Elsieham9ikolepeavi Elsieham9ikolepeavi
  • 13-07-2016
  • Business
contestada

A bank advertises a 3/1 ARM at 4.65% with a 3/9 cap. . . What is the maximum interest rate that can be charged during the fifth year?. . 3%. . 4.65%. . 9%. . 10.65%

Respuesta :

meerkat18
meerkat18 meerkat18
  • 16-07-2016
"a 3/1 ARM" means starting at a fixed interest rate for the first 3 years and the interest rate will adjust every year after the first three years  up to the part where it mentions a "3/9 cap". This on the other hand tells us that the increase will be 3% each time there is an interest rate increase and the max increase is 9%. Hence the answer is 9%
Answer Link
lexyjordan
lexyjordan lexyjordan
  • 12-05-2021

Answer is actually 10.65%

Step-by-step explanation:

yea

Answer Link

Otras preguntas

How many grams of MgSO4 are needed to make 1.65L of 0.685M solution?
Why does the US have high potential of hazardsbut low risk of disasters, while some countrieshave a high potential of hazards and a high riskof disasters? / Por
"It looks very funny, but it is so perfectly balanced a gait that you can fly off from it at any angle you please; and in dealing with snakes this is an advanta
What kind of business loan leads do you have?
Illustrate using the neoclassical synthesis model (AD/AS/LRAS) an economy at equilibrium. Now illustrate what would happen if the Federal Reserve lowered intere
(a) Recall: Why does Arsat ask the white man if he has medicine? (b) Infer: What is Arsat's state of mind?
v=1/3(571,536ft^2)(481ft)=
What is the percentage.
types of financial documents in grade 10 math lit.​
1a: State Coulomb's law?Ib: Mention and explain the methods of charging an object.