Which of the following statements are true? Check all that apply. In the early years of a 30-year loan, most of the monthly payment goes toward interest. With the same term and principal, a loan at 5\% APR will have a lower monthly payment than a loan at 6\% APR. With the same APR and principal, a 15-year loan will have a lower monthly payment than a 30-year loan. Question Help: \( \square \) Message instructor

In the early years of a 30-year loan, most of the monthly payment goes toward interest. This is true! In the initial years of a long-term loan, interest accumulates significantly, meaning that a good portion of your payments is dedicated to covering that interest rather than reducing the principal. With the same term and principal, a loan at 5% APR will have a lower monthly payment than a loan at 6% APR. Absolutely true! A lower interest rate means that less interest is charged over the life of the loan, resulting in reduced monthly payments. Choosing a lower APR can save you a substantial amount on monthly budgets!