5
QuizMultiple Choice

Buying vs Leasing a Car — Quiz

Question 5 • Financial Algebra/Mathematics

How can reading an amortization table benefit a potential car buyer?

Answer
A
It details the car's warranty coverage, specifying what repairs and services are included over time.
B
It reveals the car's performance metrics, including acceleration and fuel efficiency.
C
It catalogs the car's features and specifications, detailing everything from horsepower to tech amenities.
D
It outlines the distribution of payments toward interest and principal over the loan's duration.

Explanation

An amortization table shows how each loan payment is divided between interest and principal, as well as how the balance changes over the loan’s duration. This helps a potential buyer understand the cost and repayment progress of the car loan. The other choices describe vehicle performance, warranty terms, or features, not loan payments.

AI-written and checked against the verified answer.

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