An increase in which of the following will decrease the monthly payment? A. Interest rate B. Number of months financed C. Principal D. None of the above
Accepted Solution
A:
An increase in the number of months that you will pay will decrease the payment because you will divide the total amount owed between a larger number which would result in a smaller amount each month.
Ex: $1000 paid in 5 months is $200/month. $1000 paid in 10 months is $100/month.