quiz question 6 of 8 how do loan terms affect the cost of credit? select a response. longer loan terms have…

quiz question 6 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 6 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 amounts but increasing total interest paid as interest accumulates over a longer time. Shorter - term loans have higher monthly payments as the principal is repaid faster, resulting in less overall interest. Loan terms are mainly about repayment time and interest calculation, not just pay - schedule or collateral presence.

Answer:

Shorter loan terms have higher monthly payments and lower overall interest