Question

a lender offers a three-day \grace period.\
which statement explains what this means?
a borrower will not face increased interest rates or a lowered apr if they pay during the grace period.
a borrower can request cash advances during the grace period, as long as they pay the money back by the next payment date.
a borrower can lock in a rate and then ask for three additional days before submitting the final loan application.
a borrower will not be charged additional fees for late payments if they are made during those three days

Explanation:

A grace period for loans/credit is a set window after the due date where a late payment does not incur extra fees or penalties. Let's analyze each option:

1. The first option is incorrect because grace periods do not relate to changing interest rates/APR.
2. The second option is incorrect because grace periods do not authorize cash advances.
3. The third option is incorrect because grace periods apply to payments, not loan application timelines.
4. The fourth option correctly describes a payment grace period: no late fees for payments made within the 3 extra days.

Answer:

D. A borrower will not be charged additional fees for late payments if they are made during those three days