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QUESTION IMAGE

which type of interest rate would be riskier?○ fixed interest rate○ var…

Question

which type of interest rate would be riskier?○ fixed interest rate○ variable interest rate

Explanation:

Brief Explanations

A variable interest rate fluctuates over time based on market conditions, so the borrower or investor faces uncertainty about future interest costs/returns. A fixed rate remains constant, eliminating this uncertainty.

Answer:

variable interest rate