Multiple Choice

A bank makes two separate loans. Loan A has a principal of $10,000 and is fully repaid with a single payment of $11,000. Loan B has a principal of $20,000 and is fully repaid with a single payment of $21,000. Both loans resulted in a net gain of $1,000 for the bank. Which of the following statements accurately compares the profitability of these two loans from the bank's perspective?

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Updated 2025-09-13

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