11. taylor is about to go car shopping, and she has $5000 saved that she can use for a down - payment while…

11. taylor is about to go car shopping, and she has $5000 saved that she can use for a down - payment while still having extra cash in her emergency fund. she expects the exact model car shes looking for to cost $35,000. if her top priority is having the lowest monthly payments possible, which advice should she follow?\nput in $0 for your down payment, and choose a loan with a short term length\nput in $2500 for your down payment, and choose a loan with a short term length\nput in $3500 for your down payment, and choose a loan with a long term length\nput in $5000 for your down payment, and choose a loan with a long term length

11. taylor is about to go car shopping, and she has $5000 saved that she can use for a down - payment while still having extra cash in her emergency fund. she expects the exact model car shes looking for to cost $35,000. if her top priority is having the lowest monthly payments possible, which advice should she follow?\nput in $0 for your down payment, and choose a loan with a short term length\nput in $2500 for your down payment, and choose a loan with a short term length\nput in $3500 for your down payment, and choose a loan with a long term length\nput in $5000 for your down payment, and choose a loan with a long term length

Answer

Explanation:

Step1: Understand loan - payment factors

Monthly loan payments are affected by down - payment and loan term. A larger down - payment reduces the principal amount of the loan. A longer loan term spreads the payments over more periods.

Step2: Analyze down - payment effect

The more money put as a down - payment, the less the amount to be borrowed. Since Taylor has $5000 saved for down - payment, putting in the full $5000 will reduce the principal of the loan the most.

Step3: Analyze loan - term effect

A long loan term (more months or years) will make each individual monthly payment smaller because the total amount to be repaid is spread over a greater number of periods.

Answer:

Put in $5000 for your down payment, and choose a loan with a long term length