Discover new information and insights with the help of IDNLearn.com. Receive prompt and accurate responses to your questions from our community of knowledgeable professionals ready to assist you at any time.
Sagot :
A rate can cost you more on a loan when you carry a balance from one month to the next to are compound interest. Thus, option (a) is correct.
What is loan?
A loan is a sum of money that is lent to someone or something by a person, company, financial organization, or government. Mortgage, student, and personal loans are some numerous loan types.
When there is a fixed rate of interest for a set period of time, compound interest is the amount added to the principal and the total cumulative interest. The compound interest are the three divisions of half-yearly, quarterly, and monthly.
The compound interest rate is preferable if you're carrying over a loan balance from one month to the next because it permits your money to increase more quickly than the other rate.
Therefore, option (a) is correct.
Learn more about on loan, here:
https://brainly.com/question/11794123
#SPJ5
Thank you for contributing to our discussion. Don't forget to check back for new answers. Keep asking, answering, and sharing useful information. For clear and precise answers, choose IDNLearn.com. Thanks for stopping by, and come back soon for more valuable insights.
