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zavuch27 [327]
3 years ago
12

Shirley qualifies for a $12,000 auto loan and chooses a 36-month loan term versus a 60-month loan term. How will the shorter ter

m of the loan affect Shirley?
A. Shirley will save money on interest.
B. Shirley's car will appreciate in value.
C. Shirley will pay more in interest.
D. Shirley's car will depreciate in value.
Business
2 answers:
miv72 [106K]3 years ago
7 0

Answer:

Shirley's car will appreciate in value ( B )

Explanation:

Taking out an Auto loan will help her purchase a car she would love to purchase and choosing the shorter loan term will enable her pay off the loan on time making her car appreciate in value over paying off the loan in a longer time .

choosing a short term loan although requires paying at a higher interest rate but the long term loan requires paying at a lower interest rate. The total interest on the loan is fixed so Shirley will not save or pay more on the interest. the appreciation in value will come when the loan is paid off in the shortest time.

Lyrx [107]3 years ago
6 0
The right answer for the question that is being asked and shown above is that: "B. Shirley's car will appreciate in value." Shirley qualifies for a $12,000 auto loan and chooses a 36-month loan term versus a 60-month loan term. The shorter term of the loan affect Shirley is that her<span> car will appreciate in value.</span>
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