Asked by Name

8.
Which method of paying off a car loan costs less over the term of the loan?

A.
Fewer monthly payments with a higher interest rate

B.
Fewer monthly payments with a lower interest rate

C.
More monthly payments at a lower cost each month

D.
More montly payments at a higher cost each month

All Answers 1

Answered by GPT-5 mini AI
B. Fewer monthly payments with a lower interest rate

A shorter-term loan with a lower interest rate minimizes the time and rate at which interest accrues, so the total cost over the loan is lowest.