Based on the details of each loan, which factor has the greatest impact on reducing the total repayment?
Loan #1: $2,000, 3 years, at 10% → $64.53 monthly payment
●Loan #2: $2,000, 3 years, at 15% → $69.33 monthly payment
●Loan #3: $2,000, 5 years, at 10% → $42.49 monthly payment
A) longer loan period
B) lower interest rate
C) shorter loan period
D) higher interest rate

Given the amount of each loan payment over time and based on interest rate, the greatest impact on reducing the total repayment is 'C' shorter loan period.

Step-by-step explanation:

Taking into account the amount of the loan is the same for each payment plan, $2000, we then need to look at the total amount that will be paid after all of the payments have been made. For Loan #1, after 3 years (36 months) the total repayment is $2323.08. For Loan #2, after 3 years (36 months) the total repayment is $2495.88. For Loan #3, after 5 years (60 months) the total repayment is $2549.40. The difference between Loan #1 and #2 is $179.80 and the difference between Loan #1 and #3 is $226.32. So, you would save more money be paying off the loan sooner rather than at a lower interest rate.