question 6 of 8 aisha needs a loan to finance her latest startup. she wants a loan with the lowest overall…

question 6 of 8 aisha needs a loan to finance her latest startup. she wants a loan with the lowest overall interest costs. she’s considering a 3 - year loan with an 8% fixed interest rate or a 5 - year loan with a 6% fixed interest rate. why would aisha pick the 3 - year loan? select a response. it has a lower total cost. it has a smaller monthly payment. it has a lower interest rate. it has a higher loan amount.

question 6 of 8 aisha needs a loan to finance her latest startup. she wants a loan with the lowest overall interest costs. she’s considering a 3 - year loan with an 8% fixed interest rate or a 5 - year loan with a 6% fixed interest rate. why would aisha pick the 3 - year loan? select a response. it has a lower total cost. it has a smaller monthly payment. it has a lower interest rate. it has a higher loan amount.

Answer

Brief Explanations:

Aisha wants the lowest overall interest costs. The 3 - year loan with 8% interest has a shorter term compared to the 5 - year 6% loan. Even though the 3 - year loan has a higher interest rate, the shorter time period means less total interest paid over the life of the loan, resulting in a lower total cost.

Answer:

It has a lower total cost.