Question

One bank offers a 4% variable rate loan, while a competitor offers a 3% fixed rate loan over the same period. Assuming no other differences between the loans, a customer should choose the fixed rate loan because
A. the interest rate is higher and guaranteed to increase
B.the interest rate is higher but will not increase
C.the interest rate is lower and will not increase
D.the interest rate is lower but is likely to increase

Answer 1

@just_one_last_goodbye

Answer 2

HEY SEXY LADY!!! ~points at you~ Opa Opa Opa Gangnam Style

Answer 3

LOL

Answer 4

You know this or nah haha

Answer 5

Lol im thinking xD

Answer 6

Idk im sorry;-;

Answer 7

is there another?

Answer 8

http://prntscr.com/9fe5ho

Answer 9

dear lord...

Answer 10

answer choices http://prntscr.com/9fe5p3

Answer 11

LOL

Answer 12

I think C not 100% sure

Answer 13

okay ima tag others to help with the first but idk whos good at this subject haha @jabez177

Answer 14

Oh thats my best friend :D

Answer 15

does your bestfriend know economics xD

Answer 16

Steven for real you posting my lines in chat? :O

Answer 17

Indeed I do. Better than him. :)

Answer 18

May you please post the whole question in one link or take a snapshot of it all together?

Answer 19

i just need help on this one: One bank offers a 4% variable rate loan, while a competitor offers a 3% fixed rate loan over the same period. Assuming no other differences between the loans, a customer should choose the fixed rate loan because
A. the interest rate is higher and guaranteed to increase
B.the interest rate is higher but will not increase
C.the interest rate is lower and will not increase
D.the interest rate is lower but is likely to increase

Answer 20

Which one do you think is the answer?

Answer 21

C? im not good with this kind of thing haha

Answer 22

Yes, it's either C or D but I'm leaning more on D, re-read it a couple times mate.

Answer 23

i found this for fixed rate loan :A loan in which the interest rate does not change during the entire term of the loan. For an individual taking out a loan when rates are low, the fixed rate loan would allow him or her to "lock in" the low rates and not be concerned with fluctuations. On the other hand, if interest rates were historically high at the time of the loan, he or she would benefit from a floating rate loan, because as the prime rate fell to historically normal levels, the rate on the loan would decrease.

Answer 24

Ahh yes, C is the answer then. :D

Answer 25

Thank you for the help! :D