Question

what is the best example of a down payment? a. ann signs a cell phone plan that includes a little of the cost of her new phone as part of her bill every month. b. billy orders a piano, pays half the cost up front, and has to pay the other half when the piano is delivered. c. robby pays 10 percent cash up front and gets a loan for the remaining 90 percent of the cost of a condominium. d. margo leases an apartment and pays $500 cash as a security deposit when she moves in.

Explanation:

A down - payment is an upfront payment made when purchasing a large - ticket item, often to secure a loan for the remaining amount. Option A is a monthly payment plan, not a down - payment. Option B is a partial payment but not related to a loan. Option D is a security deposit, not a down - payment. Option C involves an upfront cash payment for a property purchase with a loan for the rest, which is a typical down - payment scenario.

Answer:

C. Robby pays 10 percent cash up front and gets a loan for the remaining 90 percent of the cost of a condominium.