quiz\nquestion 0 of 0\naisha needs a loan to finance her latest startup. she wants a loan with the lowest…

quiz\nquestion 0 of 0\naisha needs a loan to finance her latest startup. she wants a loan with the lowest overall interest cost. shes 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?\nselect a response.\nit has a lower total cost.\nit has a smaller monthly payment.\nit has a lower interest rate.\nit has a higher loan amount.

quiz\nquestion 0 of 0\naisha needs a loan to finance her latest startup. she wants a loan with the lowest overall interest cost. shes 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?\nselect a response.\nit has a lower total cost.\nit has a smaller monthly payment.\nit has a lower interest rate.\nit has a higher loan amount.

Answer

Explanation:

Step1: Analyze loan - related factors

The main concern is overall cost. Interest rate and loan term affect total cost. A shorter - term loan with the same interest rate will have less total interest paid compared to a longer - term loan.

Step2: Compare 3 - year and 5 - year loans

The 3 - year loan has the same 6% fixed interest rate as the 5 - year loan. Since the time period is shorter, the total amount of interest paid over 3 years will be less than over 5 years, resulting in a lower total cost.

Answer:

It has a lower total cost.