A fixed interest rate means that the rate of the finance charge does not change throughout the duration of the extension of credit. For example, a car dealer may offer a loan for a car at 4.9%APR for 24 months; this means the APR is fixed at 4.9% for the duration of the loan (which is an instalment closed-end credit loan).
Under a variable rate loan, the finance charge is determined by an index, such as the
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