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(d) Suppose Freddie was charged a higher interest rate for the loan than what kiki...

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(d) Suppose Freddie was charged a higher interest rate for the loan than what kiki had arranged. Assuming Freddie is still borrowing the same amount and making level repayments over 8 years at the same points in time (but a different amount due to the different interest rate), which of the following statements about the total interest Freddie pays in the first year is true? a. The total interest in the first year will be lower than the answer in part c), as the higher monthly repayments will pay off the principal sooner, meaning less interest is charged. b. The total interest in the first year will be higher than the answer in part c), as the interest rate is higher and nothing else about the loan has changed (apart from the repayments). c. The total interest in the first year will be exactly equal to the answer in part c), as the increase in the repayments will compensate any extra interest charged. d. We cannot determine anything about the interest in the first year without knowing the exact interest rate and performing a calculation

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