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 answer:
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.
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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.
