Decide whether the statement makes sense. Explain your reasoning.I was offered a 30-year mortgage at a fixed rate of 5% or an adjustable rate mortgage that starts at 4% for the first year. The ARM has no rate cap, but I will take that one anyway because it doesn't look like interest rates will be going up any time soon.
What will be an ideal response?
No, the statement does not make sense. It is hard to predict what will happen to interest rates over a 30-year period. It is very risky to take an ARM that has no rate cap.
You might also like to view...
Express the product as a sum containing only sines or cosines.-2 sin (5?) sin ?
A. cos (6?) - cos (4?) B. cos (7?) + cos (3?) C. cos (7?) - cos (3?) D. cos (6?) + cos (4?)
Match the diagrams with the concepts by writing the identifying letter of the diagram on the blank line to the left of the concept. "VAL" represents the value to be calculated.
Concept ___1.
Future value of $1 ___2.
Present value of $1 ___3.
Future value of an annuity due of $1 ___4.
Future value of an ordinary annuity of $1 ___5.
Present value of an ordinary annuity of $1 ___6.
Present value of an annuity due of $1
What will be an ideal response?
Establish the identity.
+ 
= 2 csc x
What will be an ideal response?
Write the first five terms of the geometric sequence with the given first term a and common ratio r.a = 4; r = 5
A. 4, 9, 14, 19, 24 B. 20, 100, 500, 2500, 12,500 C. 5, 20, 80, 320, 1280 D. 4, 20, 100, 500, 2500