In which scenario would it be more advantageous for you to take out a loan?

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The interest rate is 12% while inflation stands at 9%The interest rate is 20% and inflation is 25%The interest rate is 5% with inflation at 1%The interest rate is 15% alongside a 14% inflation rate

Explanation

Borrowing is preferable when the inflation rate exceeds the nominal interest rate because the real interest rate becomes negative, reducing the actual cost of the loan. Among the options, only when the nominal interest rate is 20% and inflation is 25% (option B) does this occur.