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) your monthly loan payment will remain the same for all the months..

Question

Quizplus · Accepted Answer

With a variable interest rate, the interest rate can fluctuate over time, causing changes to the total amount of interest you will pay on the loan. This makes it difficult to accurately predict the total interest you will pay.

If Your Installment Loan Has a Variable Interest Rate