213k views
0 votes
Gina made a down payment on a motorcycle. What incentive did she have for making a down payment?

Group of answer choices

A tax break

A reduced time in debt

A higher loan rate

A less secure loan

User Gws
by
6.2k points

1 Answer

3 votes

Answer:

A reduced time in debt

Step-by-step explanation:

Gina intends to purchase that motorbike on credit. By making a down-payment, Gina is reducing the amount she needs to borrow to buy the bike.

A reduced loan amount means that Gina will require less to repay. It also implies that the interest to be paid will reduce. Making the down-payment helps Gina stay in debt for a short period.

User Aaron Cooley
by
6.2k points