Question: QUESTION 19 A standard ARM has a cap such that the rate cannot increase more than 1 percent per year and 5 percent over the

QUESTION 19 A standard ARM has a cap such that the

QUESTION 19 A standard ARM has a cap such that the rate cannot increase more than 1 percent per year and 5 percent over the life of the mortgage. What will the mortgage rate be after three years if the initial rate is 5%, and interest rates increase by 2% in each of the first three years of the contract? 7% o 6% 9% QUESTION 20 What will be the amount of interest paid in the tenth month of a $250,000, 4.5 percent, 30 year loan? $926 $764 $857 $1012

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