Question

(03.02 MC)

Mariah made a down payment on a van. Which of the following is true because of the
down payment?
She has additional time to repay the loan.
Her credit limit will increase.
She has some equity or ownership right away.
Her insurance will decrease.

Answer 1

C.

Step-by-step explanation:

The correct answer is that she has some equity or ownership right away because of the down payment that she has made on the van. Hope this helps! :)

Answer 2

Her credit limit will increase.

Her insurance will decrease.

Step-by-step explanation:

A down payment is a sum of money, which when entering into an agreement is paid by one party to the other as an advance on the payment. By handing over and receiving a down payment, the parties show that they are bound by the agreement. The point of down payment from the seller's perspective is usually that the buyer loses his down payment (or part of it) if he or she for some reason does not want to complete the deal. A standard level of a down payment is 10 percent of the purchase price. By paying the down payment, the buyer grants legal security to the sale, thereby reducing the risk. Therefore, for the buyer, the cost of insurance does too. At the same time, having paid a substantial part of the credit obtained, also increases the credit limit that the person has.