This is the same payoff table used in questions 2 and 3. Below is a payoff table that lists four mortgage options: Decision 1-year ARM 3-year ARM 5-year Arm 30-year fixed Rates Rise $66,645 $62,857 $55,895 $52,276 Outcomes Rates Stable $43,650 $47,698 $50,894 $52,276 4) Which of the following decisions has the best average payoff? A. 3-year ARM B. 1-year ARM C. 5-year ARM D. 30-year Fixed Rates Fall $38,560 $42,726 $48,134 $52,276

This is the same payoff table used in questions 2 and 3. Below is a payoff table that lists four mortgage options: Decision 1-year ARM 3-year ARM 5-year Arm 30-year fixed Rates Rise $66,645 $62,857 $55,895 $52,276 Outcomes Rates Stable $43,650 $47,698 $50,894 $52,276 4) Which of the following decisions has the best average payoff? A. 3-year ARM B. 1-year ARM C. 5-year ARM D. 30-year Fixed Rates Fall $38,560 $42,726 $48,134 $52,276