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

select the correct answer. tanya is considering obtaining a loan. which benefit will tanya receive if she makes a down - payment when she obtains the loan? a. higher finance charge b. higher interest rate c. higher principal amount d. lower penalties on late payments e. lower principal amount
Answer
Answer:
E. lower principal amount
Brief Explanations:
A down - payment reduces the amount of money borrowed, thus lowering the principal amount of the loan. Higher finance charges, interest rates are not benefits of down - payment. Down - payment has no direct relation to late - payment penalties.