If the interest rate on a loan changes according to the daily average of the prime rate over the life of the loan,the interest rate is said to be:

A) floating.
B) non-variable.
C) unsecured.
D) sporadic.
E) flexible.

Floating interest rates, also known as variable or adjustable rates, change over the life of a loan based on an underlying benchmark interest rate or index that reflects the cost to the lender of borrowing on the credit markets.