question 5 of 8\nhow do loan terms affect the cost of credit?\nselect a response.\nlonger loan terms have…

question 5 of 8\nhow do loan terms affect the cost of credit?\nselect a response.\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 5 of 8\nhow do loan terms affect the cost of credit?\nselect a response.\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 - term loans typically have higher monthly payments as the principal is paid off more quickly, resulting in less overall interest paid over the life of the loan. Longer - term loans spread the principal repayment over a greater period, leading to lower monthly payments but more interest paid over time. Loan terms are not just based on pay schedules and apply to both secured (with collateral) and unsecured loans.

Answer:

Shorter loan terms have higher monthly payments and lower overall interest