Ask Question
BusinessBusiness
10 January, 04:31

The Quimbys obtain a loan that starts out at 5.5% interest. After five years, the interest rate will adjust to whatever the current market rate is. This is known as a/an:

+1
Answers (1)
  1. 10 January, 06:20
    0
    If this is a mortgage loan, it is called an adjustable rate mortgage (ARM) or if it is some other type of loan it is simply called an adjustable rate loan.

    The name basically tells us everything about this type of loans, their interest rate varies and is adjusted periodically. The periods and adjustments vary depending on the specific loan, e. g. the Quimbys' loan is adjusted after 5 years, this period can be shorter or longer depending on the specific loan agreement.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The Quimbys obtain a loan that starts out at 5.5% interest. After five years, the interest rate will adjust to whatever the current market ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
You are evaluating two different silicon wafer milling machines. The Techron I costs $210,000, has a three-year life, and has pretax operating costs of $53,000 per year.
Answers (1)
If a manager identifies numerous data integrity issues he should consider the reports generated from that data as invalid and not use them when making decisions.
Answers (1)
Allsop Company had no beginning inventory. The company purchases 300 units of inventory in January at $5 each, 500 units at $4 each in August, and 200 units at $6 each in November. The company sells 150 units during the year.
Answers (1)
If you can prevent someone from consuming a good, that good is called
Answers (1)
Crowding out refers to the situation in which Group of answer choices borrowing by the federal government raises interest rates and causes firms to invest less. foreigners sell their bonds and purchase U. S. goods and services.
Answers (1)
New Questions in Business
Suppose the restaurant industry is perfectly competitive. All producers have identical cost curves and the industry is currently in long-run equilibrium, with each producer producing at its minimum long-run average total cost of $8. a.
Answers (1)
On January 2, 2020, Vaughn Manufacturing traded in an old delivery truck for a newer model. The exchange lacked commercial substance.
Answers (1)
You are at a wedding and are unexpectedly asked to give a toast to the bride and groom. What would you do?
Answers (1)
The fundamental relationship between savings and investment spending in an economy is that: A. savings will increase as investment spending decreases. B. investment spending and savings are always equal. C.
Answers (1)
The best explanation of why Gulf airlines are giving U. S. legacy carriers stiff competition is that the Gulf carriers: A. offer more special deals to business travelers than do the U. S. legacy carriers. B. have taken advantage of U. S.
Answers (1)
Home » Business » The Quimbys obtain a loan that starts out at 5.5% interest. After five years, the interest rate will adjust to whatever the current market rate is. This is known as a/an:
Sign Up Forgot Password?