Question

Using the table, where does the smallest change in interest rates between secured and unsecured occur?


Secured

Unsecured

Credit

APR

APR

Excellent

4.75%

5.50%

Good

5.00%

5.90%

Average

5.85%

6.75%

Fair

6.40%

7.25%

Poor

7.50%

8.40%

(1 point)
Responses

at the excellent rating
at the excellent rating

at the good rating
at the good rating

at the average rating
at the average rating

at the fair rating
at the fair rating

Answer 1

To find the smallest change in interest rates between secured and unsecured loans, we need to calculate the difference between the APRs for secured and unsecured loans at each credit rating:

- **Excellent**: 5.50% - 4.75% = 0.75%
- **Good**: 5.90% - 5.00% = 0.90%
- **Average**: 6.75% - 5.85% = 0.90%
- **Fair**: 7.25% - 6.40% = 0.85%
- **Poor**: 8.40% - 7.50% = 0.90%

The smallest difference occurs at the **excellent rating**, where the difference is **0.75%**.

So the answer is: **at the excellent rating**.