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%
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lexyjordan
lexyjordan lexyjordan
  • 12-05-2021

Answer is actually 10.65%

Step-by-step explanation:

yea

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