Kalid is purchasing a home but expects interest rates to? fall, so he is choosing an? adjustable-rate mortgage of 8.022 percent with a? one-year adjustment interval. During the first three years of his mortgage he got lucky and the interest rate fell 2.5 percent per? year, but unfortunately his floor rate was 5.243 percent. Calculate his average interest rate for years? 1-3 for his? 30-year 2/6 ARM assuming the maximum allowable adjustments for the time period.
His average interest rate for years? 1-3 for his? 30-year 2/6 ARM assuming the maximum allowable adjustments for the time period is?