The Interest Rate of a Loan from a Local Savings

question 9

Multiple Choice

The interest rate of a loan from a local savings and loan may be increased or decreased during the life of the loan. This is an example of

• A) a variable interest rate.
• B) escalated interest.
• C) graduated interest.
• D) percentage interest.

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Definitions:

Satisfaction

The satisfaction or appeasement of a want, necessity, or craving.

Contractual Obligation

A contractual obligation is a duty or responsibility recognized by law that arises out of a contract agreement between parties.

Breach Of Contract

The failure of one party to fulfill the terms agreed upon in a contract, potentially leading to legal action for remedies.

Negotiate

The process of discussing something to reach an agreement or compromise.