General Education Development (GED) Practice Exam

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Prepare for the General Education Development Test. Access a wide range of questions and detailed explanations. Sharpen your skills and ace your GED exam with confidence!

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Which loan option would result in the highest total interest payment for the family?

Option A
Option B
Option C
Option D

The correct answer is: Option B

To determine which loan option results in the highest total interest payment, it's crucial to analyze the terms of each loan, including the interest rates, loan amounts, and repayment periods. In this case, the selected option is associated with a higher interest rate or a longer repayment period, which directly influences the total interest paid over the life of the loan. When a loan has a higher interest rate, it means that for every dollar borrowed, the borrower will pay more in interest. If the loan period is longer, it extends the duration over which interest accrues, further increasing the total amount paid in interest. Additionally, if this option involves a larger principal or total loan amount, that would also contribute to higher overall costs through interest payments. The combination of these factors can create a scenario where the total interest paid significantly exceeds that of other options, making it the costliest choice for borrowing. These elements explain why the identified option is the correct answer, emphasizing the impact of interest rates, loan amounts, and repayment terms on total interest costs.