question 3 of 4\nhow do loan terms affect the cost of credit?\nlonger loan terms have lower monthly payments…

question 3 of 4\nhow do loan terms affect the cost of credit?\nlonger loan terms have lower monthly payments and lower interest\nshorter loan terms have higher monthly payments and lower overall interest\nloan terms are based on your pay schedule and how often you get paychecks\nloan terms only apply to loans with collateral but do not apply to those without collateral

question 3 of 4\nhow do loan terms affect the cost of credit?\nlonger loan terms have lower monthly payments and lower interest\nshorter loan terms have higher monthly payments and lower overall interest\nloan terms are based on your pay schedule and how often you get paychecks\nloan terms only apply to loans with collateral but do not apply to those without collateral

Answer

Brief Explanations:

Shorter loan terms mean the principal is repaid faster, resulting in higher monthly payments but less interest accruing over time. Longer terms spread payments out more, lowering monthly amounts but increasing total interest. Loan terms are not just based on pay - schedule and apply to all types of loans.

Answer:

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