Question

The ______ the maturity of a loan, the ______ the payments.

a) longer; smaller
b) shorter, larger
c) shorter, smaller
d) both a and b

Answer 1

The maturity of a loan and the size of payments are related. When the maturity of a loan is longer, the payments are smaller.

Step-by-step explanation:

The correct answer is a) longer; smaller. When the maturity of a loan is longer, the payments are smaller. This is because with a longer maturity, the loan is spread out over a longer period of time, resulting in smaller monthly payments.