Q$30-$Q$32$ are based on the same assumptions as follows:

Assume a $1/1$ ARM without cap. Term$-15$ years. Initial loan balance$-$ $$10,000.$ The starting teaser rate$-3\%,$ margin$-2\%.$

Periodic adjustment cap$-2\%$

Lifetime cap rate $-12\%$

Lifetime floor rate$-3\%$

What is the mortgage rate in Year $2?$

$7\%$

$5\%$

$13\mathrm{.}50\%$

$3\%$

$1$ point

Q$30-$Q$32$ are based on the same assumptions as follows:

Assume a $1/1$ ARM without cap. Term$-15$ years. Initial loan balance$-$ $$10,000.$ The starting teaser rate$-3\%,$ margin$-2\%.$

Periodic adjustment cap$-2\%$

Lifetime cap rate$-12\%$

Lifetime floor rate$-3\%$

What is the beginning balance of the mortgage at the beginning of Year $2?$

$$9,463\mathrm{.}97$

$$9,974\mathrm{.}94$

$$9,576\mathrm{.}51$

$$9,849\mathrm{.}68$