what you know\nquestion 3 of 4\nhow do loan terms affect the cost of credit?\nlonger loan terms have lower…

what you know\nquestion 3 of 4\nhow do loan terms affect the cost of credit?\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

what you know\nquestion 3 of 4\nhow do loan terms affect the cost of credit?\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 - term loans mean less time for interest to accrue, resulting in lower overall interest, but require higher monthly payments to pay off the principal faster. Longer - term loans have lower monthly payments as the principal is spread over a longer time, but more interest accumulates. 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