questions 7 & 8

Question 7 You get a 30-year ARM at a rate of 4.85%. The rate is adjusted each year to the 1-year T-bill rate plus 0.75%. The loan has a 1% annual cap. One year later the T-bill rate is 5.44%. What rate will you pay the second year? C 6.44% 6.19% C 5.85% C 5.44% Question 8 You get an interest-only mortgage loan of $270,000 at 8.5%. For the first 3 years, your monthly payments are interest-only. What is your monthly payment for those 3 years? C $2,124.09 C $1,912.50 C $22,950 C $70.875