Real Estate Math
A Missouri buyer qualifies for a 5/1 ARM. The initial rate is 4.75% and increases 2% at first adjustment. The new rate is:
A5.75%
B6.75%✓ Correct
C7.75%
D4.75%
Explanation
New rate = 4.75% + 2% = 6.75%. Apply the appropriate real estate math formula to arrive at the answer.. The correct answer is 6.75%.. This is a common calculation on the Missouri real estate exam.
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