Finance
A 5/1 ARM means the interest rate is fixed for the first:
A1 year, then adjusts annually
B5 years, then adjusts annually✓ Correct
C5 years, then adjusts every 5 years
D51 months
Explanation
A 5/1 ARM has a fixed rate for the first 5 years, then adjusts annually thereafter based on a market index plus the margin. The 5 represents the initial fixed period, the 1 represents the adjustment frequency.
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