Question

Why is the interest rate of a loan one of the most important things to consider when shopping around for loans?

a.
The interest rate should be ignored, because there’s nothing a consumer can do to change it.
b.
The interest rate is essentially how long you have to pay off your loan, and the shorter the better.
c.
The interest rate can drastically change the total amount paid to the lender, in the case of mortgages, up to thousands of dollars.
d.
The interest rate does not change, even between banks, so choosing the right time to borrow is essential.

Answer 1

i think c because it is right i think

Answer 2

The correct answer is c. The interest rate can drastically change the total amount paid to the lender, in the case of mortgages, up to thousands of dollars.

Explanation:

The formula of interest is A=P (1+r)ⁿ

A=Final amount

P= Principal ( deposit)

r= interest rate

n= time

As we can see, interest rate will be added to the final amount. If the interest rate is higher , higher will be the amount. So, it is an important issue when you are evaluating a loan.