What is your interest rate for the third year

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Reference no: EM132063688

1. You get a 30-year ARM at a rate of 5.25%. The rate is adjusted each year to the 1-year T-bill rate plus ½%. The loan has a 1% annual cap. One year later the T-bill rate is 5.23%. In 2 years the T-bill rate is 6.47%. What is your interest rate for the third year?

5.25%

5.73%

6.97%

6.73%

2. You get a 30-year mortgage loan of $185,000 at 5% interest. You make your first payment on March 1. Use your financial calculator to calculate the calendar-year interest for Year 2.

$9,188.02

$9,048.38

$7,666.19

$9,072.14

Reference no: EM132063688

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