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Which of the following statements about interest rates according to the material covered in the lecture are TRUE: A comparison rate includes expected interest expenses,
Which of the following statements about interest rates according to the material covered in the lecture are TRUE:
- A comparison rate includes expected interest expenses, upfront fees and ongoing fees on a $150,000 loan over a 25 year loan term.
- If variable interest rates are expected to increase in the future, choosing a fixed-interest rate for a new home loan will normally reduce your interest expenses compared to choosing a variable interest rate on a new home loan.
Neither of the statements are true (both are false)
Only statement 1 is true
Only statement 2 is true
Both statements are true (neither are false)
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