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Marjorie bought a home with an adjustable-rate mortgage. The margin on an adjustable-rate mortgage is 2.5% and the rate cap is 7% over the life

Marjorie bought a home with an adjustable-rate mortgage. The margin on an adjustable-rate mortgage is 2.5% and the rate cap is 7% over the life of the loan. If the current index rate is 5.9%, what is the calculated interest rate of the ARM?

		9.4%
		8.4%
		10.5%
		7%

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