Question: Two loans are for the same amount at the same interest rate; one is paid off in 10 years and the other in 25 years.

Two loans are for the same amount at the same interest rate; one is paid off in 10 years and the other in 25 years.
(a) Which loan results in more of each payment being directed toward principal? Explain.
(b) Which loan results in a lower periodic payment?
Explain.

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