46
practice examMultiple Choice

Practice Exam

Question 46 • Advanced Financial Algebra

Which disadvantage must Emma consider if choosing to finance the car?

Answer
A
Lower initial purchase cost.
B
Potential for high cumulative interest costs after the promotional period.
C
Quick payoff of the vehicle.
D
Increased cash reserves.

Explanation

Financing lets Emma pay for the car over time, but interest can add substantially to the total cost. If the promotional rate ends and a higher rate applies, she could face high cumulative interest costs, making that a disadvantage.

AI-written and checked against the verified answer.

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