@John_ES @BumbleBree

Which of the following loans will typically have the highest interest rate?

A. Mortgage
B. Car loan
C. Payday loan
D. Credit card

Question

@John_ES @BumbleBree 

Which of the following loans will typically have the highest interest rate?

 		A.	Mortgage
 		B.	Car loan
 		C.	Payday loan
 		D.	Credit card

anonymous · Answer

c

anonymous · Answer

This is a tricky question. Normally a mortgage stays under 7% as well as a car loan. Sometimes payday loans have a high interest rate but credit cards can have an interest rate of 12%-24% typically.

anonymous · Answer

typically have a rate of 1757%

anonymous · Answer

(in the uk)

john_es · Answer

I would choose c, too.

anonymous · Answer

I've never had a payday loan or knew anyone who did. But that's extremely high...I'll never be getting one for sure!

anonymous · Answer

so its doesnt matter where you live?

tkhunny · Answer

Think in terms of the length of the loan.  A loan is intended to generate revenue.  The shorter the loan, the less time to generate revenue, and thus the higher the necessary interest rate to meet the revenue goals.