Question

If faced with the option of paying a lump sum of $10,500 when due. Which is the better choice?

a) Making monthly payments over an extended period.
b) Paying the lump sum amount when due.
c) Choosing a deferred payment plan.
d) Opting for an installment payment scheme.
e) Postponing the payment indefinitely.

Answer 1

The best choice would be to pay the lump sum amount of $10,500 when due, as it avoids additional interest charges or fees. Other options like making monthly payments or choosing deferred payment plans may incur additional costs over time.

Step-by-step explanation:

The best choice would depend on the specific circumstances and financial capabilities of the individual. However, in general, if the individual has the financial means to pay the lump sum of $10,500 when due, it would be the better choice.

This is because paying the lump sum amount when due allows the individual to avoid any additional interest charges or fees that may be associated with other options.

For example, if the individual chooses to make monthly payments over an extended period, they may incur interest charges or fees, which can increase the overall cost of the payment. On the other hand, choosing a deferred payment plan or installment payment scheme may also incur additional interest charges or fees over time.

Therefore, b) paying the lump sum amount when due would be the best choice if the individual can afford it, as it allows them to avoid any extra costs associated with other payment options.