Evelyn has taken out a college loan. She needs to pay $500 every month for two years to repay the loan. What kind of loan does she have? A. a fixed-rate loan B. a variable-rate loan C. a constant-rate loan

Question

Mathematics

Lainey Fitzpatrick

2 August, 22:21

Evelyn has taken out a college loan. She needs to pay $500 every month for two years to repay the loan. What kind of loan does she have? A. a fixed-rate loan B. a variable-rate loan C. a constant-rate loan

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Answers (2)

Know the Answer?

Roderick Thornton · Answer 1

I think your answer is A. This sounds like a fixed-rate loan.

Ralph Chambers · Answer 2

Option A. a fixed-rate loan - is the right answer.

Step-by-step explanation:

Evelyn has taken out a college loan. She needs to pay $500 every month for two years to repay the loan.

As the monthly payment is same, this shows that the loan must be fixed rate.

If it would have been a variable rate loan, the monthly payments will not be the same for the loan tenure. They will change with time.

So, the answer is - A. a fixed-rate loan