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On Adjustable Rate Loans,the Annual Percentage Rate

Question 78

Multiple Choice

On adjustable rate loans,the Annual Percentage Rate


A) takes into account the initial contract rate on the loan,but not future contract rates.
B) takes into account the initial contract rate,and the highest possible contract rate given the terms of the loan.
C) takes into account the average expected contract rate over the duration of the loan.
D) is not published because future contract rates can not be known with certainty.

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