Question $10$

$1$ pts

Your mortgage is an ARM with a $1$ year adjustment interval, $4\%$ margin, and a $2\%$ periodic cap. Your initial APR on this loan was $4\mathrm{.}5\%.$ Over the last $5$ years$/$he market rates of interest have risen dramatically. The current interest rate index for your loan is $8\mathrm{.}5\%.$ What APR are your monthly payments being calculated on today?

$4\mathrm{.}5\%$

$8\mathrm{.}5\%$

$10\mathrm{.}5\%$

$12\mathrm{.}5\%$