If you take out a $10,000 loan to buy a used car and pay the loan off in four years,your borrowing cost at 14% is _____ as it is at 6%.

Question

Quizplus · Accepted Answer

At a 14% interest rate compared to a 6% interest rate, the total amount of interest paid over the life of a 4-year loan would be more than twice as much due to the significantly higher rate, leading to a much higher total borrowing cost.

If You Take Out a $10,000 Loan to Buy a Used