Question: QUESTION 7 You get a 30-year ARM at a rate of 4.85%. The rate is adjusted each year to the 1-year T-bill rate plus 0.75%.

QUESTION 7 You get a 30-year ARM at a rate of 4.85%. The rate is adjusted each year to the 1-year T-bill rate plus 0.75%. The loan has a 1% annual cap. One year later the T-bill rate is 5,44%. What rate will you pay the second year? 644% 6.19 % 5.85% 5.44%

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