Which of the following loans will typically offer the lowest interest rate? a. payday loans b. federal student loans c. private loan d. both a& b

Option D. is the correct answer.

Payday loan and federal student loans both will offer the lowest interest rate.

Further explanation:

Payday loan:

Payday loan is a short term loan. It can be said cash advances in which the interest rate is very low.

Federal student loan:

Federal student loan is a loan which is a financial aid provided to the students for their further studies.

Justification for the correct and incorrect

A.

Payday loan: This option is incorrect.

Payday loan offers a lower interest rate but federal student loan also offers a lower interest rate as well.

B.

Federal Student Loan: This option is incorrect.

Federal student loan offers a lower interest rate but payday loan also offers a lower interest rate.

C.

Private Loan: This option is incorrect.

Private loan charges high-interest rate. So this is not correct.

D.

Both A & B: This option is correct.

The payday loan and federal student loans both provide the lowest interest rate. This option is correct.

Thus, payday loan and federal student loans both will offer the lowest interest rate.

Learn more:

1. Life insurance:

2. Learn more about choosing the purchase of the car

3. Learn more about renting and owning

Answer details:

Grade: High School

Subject: Business

Chapter: Renting

Keywords: Which of the following loans will typically offer the lowest interest rate, payday loan, federal Student Loan, private Loan, both a & b.