question 4 toni requires a personal loan for $3,000 with monthly payments. toni considers several loan…

question 4 toni requires a personal loan for $3,000 with monthly payments. toni considers several loan offers with the same apr and needs to decide whether monthly payments for 1 year is better than 2 years. why might toni choose a shorter time period to pay off a loan? a apr is more for a 2 - year loan than for a 1 - year loan. b monthly payments will be more for a 2 - year loan than for a 1 - year loan. c less interest is charged over a 2 - year period than over a 1 - year period. d total interest paid for a 2 - year loan is more than for a 1 - year loan. 4 points

question 4 toni requires a personal loan for $3,000 with monthly payments. toni considers several loan offers with the same apr and needs to decide whether monthly payments for 1 year is better than 2 years. why might toni choose a shorter time period to pay off a loan? a apr is more for a 2 - year loan than for a 1 - year loan. b monthly payments will be more for a 2 - year loan than for a 1 - year loan. c less interest is charged over a 2 - year period than over a 1 - year period. d total interest paid for a 2 - year loan is more than for a 1 - year loan. 4 points

Answer

Brief Explanations:

Shorter - term loans generally have lower total interest costs because the principal is outstanding for a shorter time. With the same APR, a 1 - year loan will have less total interest than a 2 - year loan. Also, shorter - term loans often have higher monthly payments as the principal needs to be paid off more quickly. Toni might choose a shorter time period to pay off a loan to save on total interest paid.

Answer:

C. Less interest is charged over a 2 - year period than over a 1 - year period.