You are considering a 3/5 ARM. What does the 5 represent?

A. The total number of years in the loan
B. The number of years between adjustments in the interest rate
C. The interest rate of the initial fixed-rate loan period
D. The number of years that a fixed interest rate will be applied to the
loan

the anwser is d) 75°

step-by-step explanation:

this is the formula: v = the value of investment at the end of the time period

p = the principal amount (the initial amount invested)

r = the annual interest rate

n = the annual frequency of compounding (how many times a year interest is added)

t = the number of years the money is invested

^ means raise to the power of

this is a direct variation proportion. y = kx

y is the total amount due, k is the constant of variation, and x is the number of texts sent.

plug in the 3.20 and the 16 to solve for the "k". this is the constant of proportionality. it is the value that will not change.

3.20 = k(16). solving you get $.20 per text.

the equation would then be y = .20x

391.6 is the correct answer