Caleb is applying for a loan that requires no down payment. Which statement is true?

A.

If Caleb makes a down payment, it will lower the total cost of the loan.

B.

If Caleb makes a down payment, it will raise the total cost of the loan.

C.

If Caleb makes a down payment, it will increase the loan term.

D.

Making a down payment has no effect on the total cost of the loan.

Question

Mathematics

Jazlynn Hoover

28 June, 17:26

Caleb is applying for a loan that requires no down payment. Which statement is true?

A.

If Caleb makes a down payment, it will lower the total cost of the loan.

B.

If Caleb makes a down payment, it will raise the total cost of the loan.

C.

If Caleb makes a down payment, it will increase the loan term.

D.

Making a down payment has no effect on the total cost of the loan.

+1

Answers (1)

Know the Answer?

Paul Christensen · Answer 1

Option A.

Step-by-step explanation:

If Caleb makes a down payment., it will reduce the total cost of the loan, since he would be paying part of it "in advance" and lowering the payment amounts.