An advantage of variable-rate loans is (are)

Question

Quizplus · Accepted Answer

Variable-rate loans usually have lower initial APRs than fixed-rate loans as they pose more risk to the borrower. However, over time the interest rates can fluctuate, leading to unstable monthly payments and potentially higher overall costs. Longer repayment terms are not necessarily an advantage of variable-rate loans, as this depends on the specific loan terms offered. Therefore, the correct answer is C, lower initial APR.

An Advantage of Variable-Rate Loans Is (Are)