Fredrick bought a home with an adjustable-rate mortgage. The margin on an adjustable-rate mortgage is 3.5% and the rate cap is 5.25% over the life of the loan. If the current index rate is 7.9%, what is the calculated interest rate of the ARM?
A) 11.4%
B) 9.9%
C) 11.5%
D) 8.6%
Correct Answer:
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Q33: Narrative 14-1
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Q36: Narrative 14-1
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Q38: Narrative 14-1
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