select the correct answer.\ntanya is considering obtaining a loan. which benefit will tanya receive if she…

select the correct answer.\ntanya is considering obtaining a loan. which benefit will tanya receive if she makes a down - payment when she obtains the loan?\na. higher finance charge\nb. higher interest rate\nc. higher principal amount\nd. lower penalties on late payments\ne. lower principal amount

select the correct answer.\ntanya is considering obtaining a loan. which benefit will tanya receive if she makes a down - payment when she obtains the loan?\na. higher finance charge\nb. higher interest rate\nc. higher principal amount\nd. lower penalties on late payments\ne. lower principal amount

Answer

Brief Explanations:

A down - payment reduces the amount of money borrowed. The principal amount of a loan is the initial amount borrowed. So, making a down - payment lowers the principal amount. Higher finance charge, higher interest rate, and higher principal amount are not benefits of making a down - payment. Also, down - payment has no direct relation with late payment penalties.

Answer:

E. lower principal amount