As the number of monthly payments on a loan increases, the size of each payment [blank] and the total interest paid over the life of the loan [blank].
A)increases, decreases
B)decreases, stays the same
C)stays the same, decreases
D)decreases, increases

Question

Quizplus · Accepted Answer

As the number of payments increases, the size of each payment decreases because the total amount borrowed is being spread out over a longer period. However, the total interest paid over the life of the loan increases because the borrower is paying interest for a longer period of time.

As the Number of Monthly Payments on a Loan Increases