Question

8 the amount of time for repaying a loan will affect the amount of interest paid.

true

false

Explanation:

Analyze the relationship between loan term and interest

Using the Simple Interest and Compound Interest knowledge points:

$$ I = P \cdot r \cdot t $$

$$ A = P(1 + r)^t $$

Since time \(t\) is a direct multiplier or exponent in interest formulas, extending the repayment period increases the total interest accrued.

Evaluate the statement

Using the Simple Interest knowledge point:
A longer repayment period results in more interest payments over time, while a shorter period reduces the total interest paid. Therefore, the statement is true.

Answer:

• True (Correct answer)
• False