Jackson investigated loans for a $15,575 car. What might happen if he found a car he liked for $10,000?(1 point)
Responses
The lenders might give him a better interest rate on a smaller loan.
He would have larger monthly payments.
He would still have to take the bank’s loan offer.
The lenders will not lend him a smaller amount of money.
The lenders might give him a better interest rate on a smaller loan.
If Jackson found a car he liked for $10,000, one possibility is that the lenders might give him a better interest rate on a smaller loan.
If Jackson found a car he liked for $10,000 instead of the $15,575 he initially investigated, there are a few possible outcomes:
1. The lenders might give him a better interest rate on a smaller loan: This means that if Jackson needs to take out a smaller loan for the $10,000 car, the lenders might offer him a lower interest rate since he would be borrowing less money. This could potentially save him money in the long run.
2. He would have larger monthly payments: If Jackson still needs to finance the $10,000 car through a loan, but the loan term remains the same, his monthly payments would be larger compared to what they would have been for the $15,575 car. This is because he would be paying off a smaller loan amount over the same period of time.
3. He would still have to take the bank's loan offer: Regardless of the price of the car he found, if Jackson needs a loan to finance the purchase, he would still have to accept the bank's loan offer and go through the borrowing process. This means fulfilling any necessary requirements and agreeing to the terms and conditions set forth by the lender.
4. The lenders will not lend him a smaller amount of money: It's possible that the lender may not be willing to provide a smaller loan amount for the $10,000 car. This could be due to certain lending constraints or policies set by the lender. In this case, Jackson would need to explore other financing options or consider purchasing the car using a different method, such as saving up the money or finding alternative sources of funding.