Question

Sabrina plans to apply for a loan that requires a down payment at the end of this year what will help her reduce the total cost of the loan

Answer 1

Option D

Explanation:

Just took the test on plato and got it right

Answer 2

D. reducing the loan term and increasing the down payment

Explanation:

Sabrina's loan balance should be lowered in order to have a lower interest. Therefore, she should "increase her down payment." An increase in down payment means a smaller loan balance.

In addition to this, she should also reduce the loan term because extending the term will most likely lead to an increase overall interest. Although the monthly payment is smaller than a shorter loan term, the overall amount Sabrina will pay is actually bigger.