Final answer:
The false statement is that an annual loan is cheaper in terms of interest. The information provided indicates that the monthly loan has lower total interest expense compared to the annual loan.
Step-by-step explanation:
From the details provided, we know that the total interest expense for a monthly loan is $7,000, and the total interest payment for an annual loan is $8,000. If the following statements were provided, consider which would be false:
- Monthly payments incur less interest than annual payments.
- Monthly payments are more beneficial over the life of the loan.
- An annual loan is cheaper in terms of interest.
Based on the information given, the third statement is false because an annual loan has a higher total interest payment compared to a monthly loan. Statement 1 is true as evidenced by the lower total interest expense on the monthly plan. Statement 2 is also true as it suggests the monthly payment plan is more beneficial due to less interest being paid.