Question

Because this is a loan you want to choose the offer with the lower interest rate. You would choose to take the consolidation offer. Keep in mind that if it were an investment, rather than a loan, you would choose the offer with the higher interest rate as you would be earning money, not paying it.

Answer 1

True

Step-by-step explanation:

When it comes to an investment individuals usually look for investments with the highest return on investment. However, if it is a loan the individual will definitely prefer lower interest rate loans because the interest is an amount that would be paid two the loan issuer.

For example, a 10% interest loan of 1 million dollars implies that you will be paying $1,100,000 (1.1 million) when the loan period ends even though you collected only 1 million.