Asked by
Pooja Chaudhari
on Nov 09, 2024
Verified
A fixed-rate loan typically has a higher interest rate than the initial rate on a variable-rate loan.
Fixed-rate Loan
A loan where the interest rate remains constant throughout the term of the loan, regardless of market fluctuations.
Variable-rate Loan
A loan where the interest rate can change over time, typically based on prevailing market interest rates or a benchmark index.
- Understand the differences between fixed-rate and variable-rate loans and their implications.
Verified Answer
VM
Learning Objectives
- Understand the differences between fixed-rate and variable-rate loans and their implications.