Answers 2027 Ignite Financial Literacy-Personal Finance - EL3403 How Credit WorksQuestion 122676

122676

AssignmentMultiple Choice

How Credit Works

Question 122676 • 2027 Ignite Financial Literacy-Personal Finance - EL3403

Which statement best compares these two loans?

Answer

A

The annual percentage rate for loan A is higher than the rate for loan B.

B

The interest for loans A and B will cost the borrower the same amount over time.

C

The interest is about half the principal for A and almost equal to the principal for B.

D

The total payment for A is higher than for B, even though the principal is actually lower.

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