One bank offers a 4% variable rate loan, while a competitor offers a 3% fixed rate loan over the same period. assuming no other differences between the loans, a customer should choose the fixed rate loan because
a. the interest rate is higher and guaranteed to increase
b. the interest rate is higher but will not increase
c. the interest rate is lower and will not increase
d. the interest rate is lower but is likely to increase

Based on the given scenario above about loan rates offered by different banks, if assuming that there is no other difference between the loans, a customer should choose the fixed rate loan because the interest rate is higher and guaranteed to increase. The answer would be option A. Hope this answers your question.

$527.7.if the following was the question  $527.7 is the answer.students who are trying to raise funds have an agreement with a local pizza chain. the chain has agreed to sell them pizzas at a discount, which the students can then resell to families in the local community for a profit. it is expected that of the 500 families in the community, at most 70% will buy pizza. based on a survey of their personal preferences, the students believe that they should order no more than 120 cheese pizzas, no more than 150 pepperoni pizzas, and no more than 100 vegetarian pizzas. they also want to make sure that at least 20% of the total pizzas are cheese and at least 50% of the pizzas are pepperoni. they make a profit of $1.45, $1.75, and $1.98, respectively, for each cheese, pepperoni, and vegetarian pizza they resell. how many pizzas of each type should they buy?