You are considering taking out a 30-year adjustable-rate mortgage. The initial interest rate of 4.5% is fixed for two years. After that the rate can change up to 50 basis points per year, with a 350 basis point cap over the life the loan. The highest interest rate you could ever pay on this loan is

a-4.85%

b-4.535%

c-8.0%

c-39.5%