Question

PLEASE HURRY What is the advantage of saving for 5 years to pay the total price for a car, over buying the car today using a 5-year loan?

a. avoiding interest payments
b. paying less interest
c. spreading out payments over time
d.building one’s credit

Answer 1

A

Step-by-step explanation:

The advantage of saving for 5 years to pay the total price for a car over buying the car today using a 5-year loan is:

a. avoiding interest payments.

By saving up and paying the full price upfront, you eliminate the need to borrow money and therefore avoid paying interest on a loan. This can save you a significant amount of money over the long term.