Loan C Has the Same Principal Amount, Payment Amount, and Maturity

question 46

Multiple Choice

Loan C has the same principal amount, payment amount, and maturity date as Loan D. However, Loan C is structured as an annuity due, while Loan D is structured as an ordinary annuity. Loan C's interest rate is:

• A) Higher than Loan D.
• B) Less than Loan D.
• C) The same as Loan D.
• D) Indeterminate compared to Loan D.

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