Question

The Clark family took out a loan to buy a ranch. Each month, they make a $2,200 payment on their loan. Is the Clark family's loan payment a fixed expense or a variable expense?

Answer 1

Answer: Fixed Expense

Step-by-step explanation: a fixed expense are expenses that are constant, like monthly or yearly, example is monthly rent, it does not change the amount you pay. A variable expense are expenses that have unpredictable costs, they change accordingly, examples are food cost and gasoline.