Majestic Bank offers loans at various interest rates, dependingon the nature of the loan.

Kevin wants to borrow $230,000 for a new home. He promises topay back the loan in 10 years. Maria also wants to borrow $230,000for a new home. She promises to pay back the loan in 15 years.Assume Kevin and Maria are equally creditworthy and that the twohome mortgages are the same in all other aspects.

If all else is constant, the bank would most likely charge ahigher interest rate to (Kevin/Maria) .

Answer rating: 100% (QA)

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