37
practice examMultiple Choice

Practice Exam

Question 37 • Financial Math

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

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

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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