a bank advertises a 2/1 ARM at 5.15% with a 2/6 cap. what is the maximum interest rate that can be charged during the fifth year
1 answer:
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a) <u>n² + 6 </u>
~Here n is the number of term. So, put n = 1,2,3,4.... to get the term.
- If n = 1, first term = 1² + 6 = 7
- n = 2, second term = 10
- n = 3, third temm = 15
- n = 4, fourth term = 22
- n = 10, tenth term = 106
b) <u>3n²</u>
- If n = 1, first term = 3
- n = 2, second term = 12
- n = 3, third term = 27
- n = 4, fourth term = 48
- n = 10, tenth term = 300
Answer:
12%
Step-by-step explanation: