how do loan terms affect the cost of credit? select a response. longer loan terms have lower monthly…

how do loan terms affect the cost of credit? select a response. longer loan terms have lower monthly payments and lower interest shorter loan terms have higher monthly payments and lower overall interest loan terms are based on your pay schedule and how often you get paychecks loan terms only apply to loans with collateral but do not apply to those without collateral

how do loan terms affect the cost of credit? select a response. longer loan terms have lower monthly payments and lower interest shorter loan terms have higher monthly payments and lower overall interest loan terms are based on your pay schedule and how often you get paychecks loan terms only apply to loans with collateral but do not apply to those without collateral

Answer

Answer:

B. Shorter loan terms have higher monthly payments and lower overall interest

Brief Explanations:

Shorter - term loans are paid off faster. Higher monthly payments are required to achieve this, and since the principal is paid off quicker, less interest accumulates over time. Longer - term loans have lower monthly payments but more interest over the life of the loan. Loan terms are not just based on pay schedules and apply to all loans, not just those with collateral.