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

quiz 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

quiz 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:

Longer loan - terms spread payments over more periods, reducing monthly amount but increasing total interest due to more time for interest to accrue. Shorter loan - terms require higher monthly payments but result in less total interest as the principal is paid off faster. Loan terms are not mainly based on pay - schedule or only for collateralized loans.

Answer:

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