Math interest rate

Please explian how to figure out the the initial interest rate of the ARM ?
Given th these facts thanks :)

Ben bought a home with an adjustable-rate mortgage. The margin on the loan is 2.7% and the rate cap is 7.2% The current index rate is 4.3%

  1. 👍 0
  2. 👎 0
  3. 👁 225
  1. beck put $3000 in a saving account. At the end of 5 years, the account had earned $900 in interest . At what annual simple interest rate did the account grow.

    1. 👍 0
    2. 👎 0
  2. Calculate i,interest rate

    1. 👍 0
    2. 👎 0

Respond to this Question

First Name

Your Response

Similar Questions

  1. math

    Find the monthly interest payment in the situation described below. Assume that the monthly interest rate is 1 divided by 1/12 of the annual interest rate. You maintain an average balance of ​$780 on your credit​ card, which

  2. Finance: Mortgages

    A borrower received a 30-year ARM mortgage loan for $200,000. Rate caps are 3/2/6 (initial adjustment cap/periodic interest rate cap/lifetime interest rate cap). The start rate is 3.50% and the loan adjusts every 12 months for the

  3. math

    Case: A borrower received a 30-year ARM mortgage loan for $200,000. Rate caps are 3/2/6. The start rate is 3.50% and the loan adjusts every 12 months for the life of the mortgage. The index used for this mortgage is LIBOR (for

  4. Algebra II

    An investment service promises to triple your money in 12 years. Assuming continuous compounding of interest, what rate of interest is needed? For the question is it asking me if simple interest or continuously compounded interest

  1. MATH

    a borrower received a 30 year ARM mortgage loan for 200,000. Rate caps are 3/2/6 the start rate is 3.50% AND the loan adjusts every 12 months for the life of the mortgage, The index used for this mortgage is LIBOR which for this

  2. math

    a formula for calculating simple interest is I = Pr, were I is the interest earned in dollars, P is the principal or original investment, and r is the fixed rate of interest. If the amount of interest earned is $2.25 and the

  3. Math

    Interest is a concept familiar to most people: every credit card in existence has a term called annual percentage rate (APR), which is an interest rate. Suppose you charged $1,000 to a credit card that has a minimum payment each

  4. math,financial math

    A bank deposit paying simple interest grew from an initial amount of $1000 to $1075 in 9 months, Find the interest rate. I know the formula is I=Prt. I also know I am looking for r, the interest rate. So here is how I set up my

  1. Physics

    a modified U-tube: the right arm is shorter than the left arm. The open end of the right arm is height d = 10.0 cm above the laboratory bench. The radius throughout the tube is 1.60 cm. Water is gradually poured into the open end

  2. physics

    a modified U-tube: the right arm is shorter than the left arm. The open end of the right arm is height d = 10.0 cm above the laboratory bench. The radius throughout the tube is 1.60 cm. Water is gradually poured into the open end

  3. csci 120

    Write a function that computes the balance of a bank account with a given initial balance and interest rate, after a given number of years. Assume interest is compounded yearly

  4. College Physics 1 (Algebra-based)

    Calculate the force required of the "deltoid" muscle, Fm, to hold up the outstretched arm shown in the figure below. The total mass of the arm is 3.31kg. Assume that alpha = 15.2°, d = 12.0 cm and D = 24.0 cm. Figure: tinyurl

You can view more similar questions or ask a new question.