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The margin on an adjustable - rate mortgage is 3 . 5 % and the rate cap is 5 % over the life of the

The margin on an adjustable

-

rate mortgage is

3.5 %

and the rate cap is

5 %

over the life of the loan. If the current index rate is

6.8 %,

find the maximum overall rate of the loan. Calculated ARM interest rate

Maximum overall rate

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