Posted by
**Grace** on
.

please check my answer thanks :)

Juan bought a home with an adjustable-rate mortgage. The margin on the loan is 2.7% and the rate cap is 7.2% over the life of the loan. If the current index rate is 4.3%, what isthe initial rate of the ARM ?

A. 7%

B 9.9%

C 14.32%

My answer is I said A