Question

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.

Answer 1

Answer:

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.

Answer 2

Answer:

Option A

Step-by-step explanation:

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