What are the varying interest rates Mr. Parks pays on his chiller purchase based on the amounts?

The correct choice indicates that Mr. Parks pays interest rates of 2%, 3%, and 4% on his chiller purchase. This selection likely reflects a systematic increase in interest rates based on the amounts involved in his financing options. Financial structures often apply tiered or graduated rates where the interest increases with the amount financed or the type of deal made.

For instance, smaller amounts may typically have lower interest rates as they're perceived as lower risk, while larger amounts may come with slightly higher rates due to increased risk or additional costs associated with financing. The stated ranges imply a reasonably gradual increase, making them a common scenario in financial agreements involving equipment purchases like chillers.

Understanding these rates helps in comprehending how financing works in utility services and can guide budgeting and purchasing decisions for equipment, ensuring that Mr. Parks can effectively manage his expenses and select the most beneficial financing option.