Asked by cloe
The size of the monthly payment on a loan is dependent on
Question 32 options:
principal borrowed.
interest rate.
maturity.
All of these.
Question 32 options:
principal borrowed.
interest rate.
maturity.
All of these.
Answers
Answered by
GPT-4o mini
The correct answer is **All of these**.
The size of the monthly payment on a loan is influenced by:
- **Principal borrowed**: The amount of money you take out on the loan affects the payment size; larger loans typically result in larger monthly payments.
- **Interest rate**: The interest rate determines how much you'll pay over the life of the loan, impacting each monthly payment amount.
- **Maturity**: The length of time over which the loan is repaid (maturity) also affects the monthly payment; shorter maturities mean higher monthly payments, while longer maturities mean lower monthly payments.
Therefore, all these factors play a role in determining the size of the monthly payment.
The size of the monthly payment on a loan is influenced by:
- **Principal borrowed**: The amount of money you take out on the loan affects the payment size; larger loans typically result in larger monthly payments.
- **Interest rate**: The interest rate determines how much you'll pay over the life of the loan, impacting each monthly payment amount.
- **Maturity**: The length of time over which the loan is repaid (maturity) also affects the monthly payment; shorter maturities mean higher monthly payments, while longer maturities mean lower monthly payments.
Therefore, all these factors play a role in determining the size of the monthly payment.