A 30-year 1 /1 ARM has an initial rate of 4%. In the future the rate will reset to 250 basis change, 3% cap on annual points above the LIBOR index subject to a 2% cap on the initial rate rate changes thereafter and 4% lifetime m aximum cap on increases over the initial interest rate (i.e. "2/3/4 rate cap structure"). Suppose at the first reset, the LIBOR was 2%. What is the maximum interest rate the borrower can be charged at the second reset? (A) 6.5% (B) 7% (C) 7.5% (D) 8% The subject of an appraisal has only a one car garage, but one of the comparables use the appraisal has a two-car garage. If the adjustment for a two car garage vs a one ca garage is $10,000, the adjustment is a: (A) (B) (C) (D) $10,000 decrease to the comparable's selling price $10,000 increase to the comparable's selling price $10,000 increase to the subject's selling price $10,000 decrease to the subject's selling price