EBTM 350 - CHAPTER 16 SELF TEST EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED LATEST UPDATE

EBTM 350 - CHAPTER 16 SELF TEST EXAM QUESTIONS AND ANSWERS

WITH COMPLETE SOLUTIONS VERIFIED LATEST UPDATE

The following payoff table lists four mortgage options. What is the average payoff

for the 3-year ARM? Round to the nearest dollar.



1-year ARM, 66645, 43650, 38560

3-year ARM, 62857, 47698, 42726

5-year ARM, 55895, 50894, 48134

30-year fixed, 52276, 52276, 52276



A. $55,278

B. $51,094

C. $45,212

D. $52,792

B. $51,094

The following payoff table lists four mortgage options. Which of the following

decisions has the best average payoff?



1-year ARM, 66645, 43650, 38560

3-year ARM, 62857, 47698, 42726

5-year ARM, 55895, 50894, 48134

, 30-year fixed, 52276, 52276, 52276.



A. 5-year ARM

B. 30-year fixed

C. 1-year ARM

D. 3-year ARM

C. 1-year ARM



(Minimum of all averages)

The following payoff table lists four mortgage options. What is the worst payoff

rate for the 5-year ARM?



1-year ARM, 66645, 43650, 38560

3-year ARM, 62857, 47698, 42726

5-year ARM, 55895, 50894, 48134

30-year fixed, 52276, 52276, 52276.



A. $48,134

B. $50,894

C. $51,641

D. $55,895

D. $55,895