From a borrower's perspective,all else the same,a longer-term loan
A)costs more in interest.
B)increases the size of monthly payments.
C)decreases the size of monthly payments so costs less in interest.
D)is most cost effective in the long run.

Question

Quizplus · Accepted Answer

A longer-term loan typically costs more in interest over the life of the loan because interest accumulates over a longer period, even if the monthly payments are smaller.

From a Borrower's Perspective,all Else the Same,a Longer-Term Loan