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

quiz\nquestion 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

quiz\nquestion 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 loan terms mean the principal is paid off faster, resulting in higher monthly payments but less interest over the life - of the loan. Longer terms have lower monthly payments but more interest due to the longer time the money is borrowed. Loan terms are not just based on pay schedules and apply to both secured and unsecured loans.

Answer:

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