$1$ points

payment.

Which of the following is true?

Helpful tip: You will want to calculate and make note of the monthly payment and total cost of the loan for both financing options.

The $3-$year loan has smaller monthly payments, but a higher total cost.

The $4-$year loan has smaller monthly payments, but a higher total cost.

The $4-$year loan has larger monthly payments, and a higher total cost.

The $3-$year loan has larger monthly payments, and a higher total cost.