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lisov135 [29]
3 years ago
8

What is the correlation between term length of a loan and interest paid?

Business
1 answer:
Nadusha1986 [10]3 years ago
7 0

Answer:

There is a positive relationship between the length of a loan and its interest paid

Explanation:

A positive relationship exist between the length of a loan and the interest paid. A higher interest will be paid for a longer time period. This is so because the lender is giving out a sum of money for more than the average time period, hence  the interest must be increased appropriately too.

Hence, the shorter the repayment time for a loan, the lowest the interest and vice versa.

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