If your installment loan has a variable interest rate,
A)the rate will remain the same over the life of the loan.
B)the amount you borrowed will change with interest rates.
C)you cannot accurately predict the total interest you will pay on the loan.
D)you can calculate the total interest you will pay on the loan.
E)none of these are true.

Question

Quizplus · Accepted Answer

If your installment loan has a variable interest rate, the interest rate can change over the life of the loan, which means that it's difficult to accurately predict the total interest you will pay. As market conditions change, the interest rate on your loan can go up or down, affecting the overall cost of borrowing.

If Your Installment Loan Has a Variable Interest Rate