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What does the outcome depend on

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Suppose an ARM loan has a margin of 2.75, an initial index of 3.00 percent, a teaser rate for the first adjustment period of 4.00 percent, and caps of 1.00 and 5.00 percent. If the index remains unchanged for the second adjustment period, what will be the interest rate on the loan? If there is more than one possible answer, what does the outcome depend on?

Reference no: EM13511048

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