Question

Which of the following loans will typically have the highest interest rate?

Answer 1

Answer:

Option: D is the correct answer.

D) Payday loan.

Step-by-step explanation:

Payday Loan---

A payday loan is a short-term, high interest, fast cash loan marketed as a way to borrow money ASAP.

A payday loan is a small, short-term unsecured loan, "regardless of whether repayment of loans is linked to a borrower's payday."

It is also called a payday advance, salary loan, payroll loan, small dollar loan, short term, or cash advance loan.

Hence, the loans which typically have the highest interest rate is:

D) Payday Loan.

Answer 2

$\boxed{{\text{Payday loan}}}$ will typically have the highest interest rate. Option (D) is correct.

Further Explanation:

Given:

The options are as follows.

(A) Credit card

(B) Car loan

(C) Mortgage

(D) Payday loan

Explanation:

Payday loan has usually high interest rate as they are for very short term. The amount of payday loan is usually less.

The payday loans are unsecured loan.

An example of payday loan is borrowing money for short period of time.

$\boxed{{\text{Payday loan}}}$ will typically have the highest interest rate. Option (D) is correct.

Option A is not correct as the credit card loans don’t have the highest interest rate.

Option A is not correct as the car loan don’t have the highest interest rate.

Option A is not correct as the mortgage don’t have the highest interest rate.

Option D is correct as the payday loan will typically have the highest interest rate.

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Answer details:

Grade: High School

Subject: Mathematics

Chapter: Credit Risk

Keywords: probably, bills, high balance, high credit, bills on time, depts., pay off depts., credit cards, debit cards, high credit score.