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  3. 1) if one of the terms of an arm read, interest is

1) If one of the terms of an ARM read, interest is capped at 1%/2%/6%,...

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Accounting

1) If one of the terms of an ARM read, interest is capped at 1%/2%/6%, what would that mean?

(A) The borrower can choose the cap he wants by simply circling the appropriate choice

(B) The interest rate has a 1% maximum initial rate change and a 2% subsequent maximum rate change with a maximum interest rate of 6%

(C) The interest rate has a 1% maximum initial rate change and a 2% subsequent maximum rate change and a 6% floor rate

(D) The interest rate has a 2% subsequent maximum rate change after the initial rate change and a 5% lifetime cap rate

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