the amount you pay for your car each month depends (in part) on how long you take to pay your car loan back…

the amount you pay for your car each month depends (in part) on how long you take to pay your car loan back (the loan term). which of these loan terms would result in the lowest monthly car payment? choose 1 answer: a 24 months b 36 months c 48 months d 60 months

the amount you pay for your car each month depends (in part) on how long you take to pay your car loan back (the loan term). which of these loan terms would result in the lowest monthly car payment? choose 1 answer: a 24 months b 36 months c 48 months d 60 months

Answer

Explanation:

Step1: Understand loan - payment relationship

The total loan amount is fixed. The longer the loan term, the more months to spread the payment over.

Step2: Analyze monthly payment

Monthly payment = Total loan amount / Number of months. So, a larger number of months results in a lower monthly payment.

Answer:

D. 60 months