Question

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

Explanation:

To determine the loan term with the lowest monthly car payment, we consider the relationship between loan term and monthly payment. For a fixed loan amount and interest rate, a longer loan term means the total amount (principal + interest) is spread over more months. This results in a lower monthly payment because the same total amount is divided into more installments. Among the options, 60 months is the longest term, so it will have the lowest monthly payment.

Answer:

D. 60 months