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Evelyn has taken out a college loan. She needs to pay $500 every month for two years to repay the loan. What kind of loan does she have?
O A.
a fixed-rate loan
B.
a variable-rate loan
c.
a constant-rate loan



Answer :

GinnyAnswer

Final answer:

Evelyn has a constant-rate loan where she pays [tex]$500 every month for two years. This type of loan maintains fixed monthly payments throughout the loan term.


Explanation:

Evelyn has a constant-rate loan because she needs to pay the same amount, $[/tex]500, every month over a specified period, in this case, two years, to repay the loan.

A constant-rate loan refers to a loan with fixed monthly payments throughout the loan term, regardless of changes in economic conditions or interest rates.

In contrast, a fixed-rate loan would also have consistent payments, but over a longer period, such as a mortgage with the same interest rate over its life.


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