Answered

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If a borrower takes longer to pay back a loan, what happens?

A. Monthly payment is lower
B. No answer is correct
C. Monthly payment will go up
D. No change in the monthly payment

Sagot :

GinnyAnsweridn

Final answer:

When a borrower takes longer to pay back a loan, the monthly payment will go up due to potentially higher interest rates.


Explanation:

Monthly payment will go up. When a borrower takes longer to pay back a loan, especially if they have been late on payments, the lending institution may charge a higher interest rate, resulting in higher required monthly payments. This is because the lender wants to ensure more of the debt is paid off upfront in case of payment issues.


Learn more about Loan repayments here:

https://brainly.com/question/29539111


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