Question: You want to get a variable rate loan that has terms of 5% 2/6. Which of the following is true? A. The maximum the interest

You want to get a variable rate loan that has terms of 5% 2/6. Which of the following is true?

A. The maximum the interest rate can change over the life of the loan is 11 (5 + 6) percentage points.

B. The interest rate can increase by 2 percentage points each year for the next 6 years.

C. After 1 year the interest rate on this loan can increase to 7%

D. The interest rate on the loan is fixed at 5% APR for the first 2 years, after which it can increase to 6% APR.

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