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

تمرين 24

Joe and Gloria Moutran are purchasing a house in Winter Springs financed with an adjustable-rate mortgage. The lender's margin on the loan is 2.75%, and the overall rate cap is 6.2% over the life of the loan. The current index rate is 5.8%.
a. What is the calculated interest rate of the ARM
b. What is the maximum overall ARM rate of the loan