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Which loan in the below table should have the lowest initial interest rate? Show working. LOAN 1 LOAN 2 LOAN 3 LOAN 4 Initial Interest

Which loan in the below table should have the lowest initial interest rate? Show working.



  		1. LOAN 1LOAN 2LOAN 3LOAN 4
    Initial Interest Rate????
    Loan Maturity (years)20202020
    % Margin Above Index3%---3%3%
    Adjustment Interval1 yr.---1 yr.1 yr.
    Points1%1%1%1%
    Interest Rate CapNONE----1%/yr.3%/yr.

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