Isaiah is a net borrower when the interest rate is 5% and a net saver when the interest rate is 25%.An increase in the interest rate from 5 to 25% may make Isaiah worse off.

Net Borrower

An entity, such as a government or a business, that borrows more money than it lends, resulting in a net outflow of funds.

Interest Rate

The part of a loan that incurs interest for the borrower, generally expressed as an annual percentage of the outstanding loan.

Net Saver

An individual or institution that saves more resources or funds than they spend or consume.