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anonymous
 one year ago
a bank advertises a 3/2 ARM at 3.75% with a 3/9 cap what is the maximum interest rate that can be charged during the fourth year
anonymous
 one year ago
a bank advertises a 3/2 ARM at 3.75% with a 3/9 cap what is the maximum interest rate that can be charged during the fourth year

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Michele_Laino
 one year ago
Best ResponseYou've already chosen the best response.0I'm sorry, I'm not good in financial mathematics

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0Unless you want a number in the millions

mathmate
 one year ago
Best ResponseYou've already chosen the best response.1Are you ready to spend time to understand the problem?

mathmate
 one year ago
Best ResponseYou've already chosen the best response.1Since either you're busy, or you're not online, I will just leave you with reading, from which you can find your answer. http://www.quickenloans.com/blog/adjustableratemortgagetermsarmknowledge 3/2 ARM means initial (period) period = 3 years, adjustment periods = 2 years 3/9 cap means periodic cap = +3%, overall cap (over life of mortgage) = +9%.

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0i got 6.75 is that right?
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