For a given interest rate and starting loan balance, a longer amortization will typically lead to:...

For a given interest rate and starting loan balance, a longer amortization will

typically lead to:

a.

Higher payments and higher total interest paid.

b.

Higher payments and lower total interest paid.

c.

Lower payments and higher total interest paid.

d.

Lower payments and lower total interest paid

Could you explain by formula?

Expert Solution

correct answer is option C. as the longer amortization period is chosen the EMI is decreased. but in total over the period of time , total interest paid is higher in comparison of shorter period of time.

jeff jeffy answered 2 years ago

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