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A mortgage has a current rate of 3%, with 2% annual adjustments and a 7% lifetime cap over the introductory rate, with a 30 year

A mortgage has a current rate of 3%, with 2% annual adjustments and a 7% lifetime cap over the introductory rate, with a 30 year amortization paid monthly. If rates rise steadily, then the rate at the end of the fourth year might be as high as ______. a. 11% b. 10% c. 8% d. 7% e. none of the above

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