loan charges 25. You get a 30-year ARM at a rate of 4.75%. The rate is adjusted each year to the 1-year T-bill rate plus 0.75%. The loan has a 1% annual cap. One year later the T-bill rate is 5.13%....

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Extracted text: loan charges 25. You get a 30-year ARM at a rate of 4.75%. The rate is adjusted each year to the 1-year T-bill rate plus 0.75%. The loan has a 1% annual cap. One year later the T-bill rate is 5.13%. What rate will you pay the second year? 26. Refer to Problem 25. Your monthly payment will increase for year 2. (T or F)