What is the meaning of the following: Interest is capped at 2%/5%.
A) The loan has a 2% annual cap rate and a 5% lifetime cap rate.
B) The borrower can choose the cap he wants by simply circling the appropriate choice.
C) The loan has a 2% lifetime cap rate and a 5% annual cap rate.
D) The loan has a 2% annual cap rate and a 5% floor cap rate.
Correct Answer:
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