Which of the following does not affect the interest rate on a loan?

Question

Quizplus · Accepted Answer

The retirement plans of a borrower do not affect the interest rate on a loan. The other options listed can all have an impact on the interest rate. The duration of the loan will typically affect the interest rate, as the longer the duration, the higher the risk to the lender. The tax treatment of the loan can also be a factor, as some loans may offer tax advantages that could affect the interest rate. The administrative cost of the loan may be factored into the interest rate, as lenders will typically charge higher rates to cover their costs. Finally, the risk of default on the loan is a key consideration for lenders, and loans with higher risk of default will typically have higher interest rates.

Which of the Following Does Not Affect the Interest Rate