The correct answer is c. The interest rate can drastically change the total amount paid to the lender, in the case of mortgages, up to thousands of dollars.
Step-by-step explanation:
The formula of interest is A=P (1+r)ⁿ
A=Final amount
P= Principal ( deposit)
r= interest rate
n= time
As we can see, interest rate will be added to the final amount. If the interest rate is higher , higher will be the amount. So, it is an important issue when you are evaluating a loan.
