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Nick is comparing the costs of two loans. The principal amount of each loan is...

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Nick is comparing the costs of two loans. The principal amount of each loan is $2,000. One is due in one year and the other is due in three years. Both have the same stated rate of annual interest. Which of the following is true? The principal paid for the one-year loan will be higher than the principal paid for the three-year loan. The principal paid for the one-year loan will be lower than the principal paid for the three-year loan. The total interest paid for the one-year loan will be lower than the interest charges for the three-year loan. o The interest charges and principal payments cannot be compared for the two loans. The total interest paid for the one-year loan will be higher than the interest charges for the three-year loan

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