question 5 of 8 how do loan terms affect the cost of credit? select a response. longer loan terms have lower…

question 5 of 8 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

question 5 of 8 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

Brief Explanations:

Shorter loan - terms mean the principal is paid off faster, reducing the total interest paid over the life of the loan, and require higher monthly payments. Longer terms spread payments over more time, resulting in lower monthly payments but more interest paid overall. Loan terms are not based on pay - schedules or only apply to collateralized loans.

Answer:

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