5. A Graduated Payment Mortgage (GPM) that graduates 5 times stabilizes its monthly payment in year(s) given loan terms or 9%, 30 years. a. 5-30 b. 6-30 c. 30 d. all of the above ans nswers 6. A GPM has a: a variable interest rate b. inflation adjusted interest rate through time c. fixed interest rate d. step-up interest rate income 7. A GPM is primarily of interest to mortgage applicants that expect in the future: a. Rising b. Falling c. Remain stable d. None of the above answers 8. Negative amortization with a GPM occurs during: a. Later years of the loan only b. middle years of the loan only c. early years of the loan only d. All the above answers 9. When calculating the annual amortization table for a GPM the following factor is used: a. PVIF b. PVIFA c. FVIF d. FVIFA 10. When comparing Option 1: First Mortgage only to Option 2 the combination of a 1st and 2nd mortgages, the decision rule for acceptance of the combo option (option 2) is: a. MC is less than MB2 b. MC is greater than MB2 c. MC1 is less than MC2 d. MC is greater than MC2