Question $92(1$ point$)$

Peter obtained a mortgage of $500,000$ to buy a house. It has a variable rate of $3\%$ for a term of $5$ years. The monthly payment is $2,000$ which stays the same for the term. Which statement is correct?

a$)$ It will take Peter $5$ years to fully retire mortgage.

b$)$ If interest rate rises during the term, then Peter faces the problem of negative amortization

c$)$ Variable$-$rate mortgage usually have a higher initial rate than fixed$-$rate mortgage

$$ d$)$ If interest rate declines during the term, then Peter should convert into a fixed$-$rate mortgage