Contemporary Mathematics for Business & Consumers 8th Edition by Robert Brechner,Geroge Bergeman

تمرين 7

Dale Evans bought the Lazy D Ranch with an adjustable-rate mortgage. The lender's margin on the loan is 3.9%, and the overall rate cap is 6% over the life of the loan.
a. If the current index rate is 4.45%, what is the calculated interest rate of the ARM
b. What is the maximum overall rate of Dale's loan