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TheJag18:
A bank advertises a 2/1 ARM at 2.75% with a 2/10 cap. What is the maximum interest rate that can be charged during the fifth year? 2.75% 4.75% 6.75% 8.75%
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Phantomdex:
4.75% + 2% + 2% = 8.75%. (Didn't see this new one lol)
Phantomdex:
Oh and as for where the 4.75% came from- 2.75% + 2% = 4.75%.
TheJag18:
great :)
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