typically, which loan would cost a borrower more money in interest over time?\n\n- a 10-year loan\n- a…
typically, which loan would cost a borrower more money in interest over time?\n\n- a 10-year loan\n- a 30-year loan
Answer
Brief Explanations:
The total interest paid on a loan is directly related to the length of the repayment term. While a longer-term loan (such as a 30-year loan) typically has lower monthly payments, the interest accrues over a much longer period. Consequently, the borrower pays interest on the outstanding principal for an additional 20 years compared to a 10-year loan, leading to a significantly higher total cost of borrowing.
Answer:
a 30-year loan