Amy and Chuck each buy a car for $20,000. Amy's monthly payment is
$100 more per month than Chuck's. Which of the following statements
would explain the difference?
А
B
Chuck has a lower credit score, so
his interest payments are also lower
Amy made a larger down payment,
so her monthly payments are also
larger
С
D
Amy chose a shorter term for her
loan, so her monthly payments are
higher
Chuck's interest rate is higher, so his
monthly payment due is also lower

Answers

Answer 1
Amy has a shorter term loan
Answer 2

Amy chose a shorter term for her loan, so her monthly payments are higher. This statement best describes Amy's difference in the monthly payments. Thus, option C is appropriate.

When you accept money from a relative, bank, or other financial organization in exchange for future principal and interest repayment, that transaction is known as a loan. They may be secured, such as a mortgage and home equity line, or they may be unsecured, like an individual loan or cash advance loan.

A loan with simple interest is not compounded. This means that you pay a fixed weekly amount plus interest because your interest is based on the loan's remaining principal balance.

Thus, option C is correct.

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Answers

Answer:

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Explanation:

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