Answered

Which of the following should be considered when deciding on a loan?

a.the lowest finance charge

b.the fastest payoff.

c.the most affordable monthly payment.

Dall of the above.
Ethe first andsecond above?

Verified Answer :

The answer is d all of the abovten

Answer:

d. all of the above.

Explanation:

When deciding on a loan, the considerations would include;

The lowest finance charge -  This ensures that the interest expense on the loan amounts to a fee that is worth the cost of the loan. It is a measure of the cost incurred in taking the loan.

The fastest payoff - this is a key consideration as the earlier a business or an individual settles the loan, the more likely it is that the cost of taking the loan reduces.

The most affordable monthly payment - this is an important consideration as the entity taking the loan should ensure that the payment terms are affordable.

Hence the right option is d. all of the above.

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