6
practice testMultiple Choice

Practice Test

Question 6 • Financial Algebra/Mathematics

What does a higher down payment imply for a car buyer?

Answer
A
lower monthly payments
B
longer loan terms
C
higher insurance costs
D
increased maintenance costs

Explanation

A higher down payment means the buyer borrows less money to purchase the car. With a smaller loan balance, the monthly payments are generally lower, assuming the loan term and interest rate stay the same. So the correct choice is lower monthly payments.

AI-written and checked against the verified answer.

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