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26-12-2023
Business

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An ARM loan has a 4.00% start rate, and it is time for the first adjustment to be made. It has a periodic cap of 1% and a lifetime cap of 5%. Assuming that the rate is going to increase, what will the rate be after its first adjustment?
A. 9.00%
B. 4.00%
C. 7.00%
D. 5.00%

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