Jackson investigated loans for a $15,575 car. What might happen if he found a car he liked for $10,000?(1 point) Responses He would still have to take the bank’s loan offer. He would still have to take the bank’s loan offer. The lenders will not lend him a smaller amount of money. The lenders will not lend him a smaller amount of money. The lenders might give him a better interest rate on a smaller loan. The lenders might give him a better interest rate on a smaller loan. He would have larger monthly payments.
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 investigated loans for, he might experience several outcomes. Firstly, he may still have to take the bank's loan offer as originally intended. Additionally, it is possible that the lenders will not lend him a smaller amount of money than he initially applied for. On the other hand, there is a possibility that the lenders might give him a better interest rate on a smaller loan if he chooses the car priced at $10,000. However, one potential drawback of opting for the cheaper car is that he may have larger monthly payments if he decides to take out a loan for the full purchase price.
If Jackson found a car he liked for $10,000 instead of the $15,575 he originally investigated loans for, there are a few potential outcomes:
1. He would still have to take the bank's loan offer: This means that even if Jackson found a cheaper car, he would still need to take the loan offered by the bank. This suggests that the loan amount is fixed and not dependent on the car's price.
2. The lenders will not lend him a smaller amount of money: This implies that the lenders have a minimum loan amount and would not be willing to provide a loan for the reduced price of the car. In this case, Jackson would need to find alternative financing options or save up the difference in order to purchase the car.
3. The lenders might give him a better interest rate on a smaller loan: This suggests that if Jackson were able to secure a smaller loan amount for the $10,000 car, the lenders might offer a more favorable interest rate. A smaller loan amount generally carries less risk for lenders, which could result in a lower interest rate.
4. He would have larger monthly payments: This means that even if Jackson found a cheaper car, the monthly payments on his loan would still be based on the original loan amount for the $15,575 car. As a result, his monthly payments would remain the same despite the reduced car price.
The correct response from these options would be "The lenders might give him a better interest rate on a smaller loan" as it suggests that Jackson may benefit from a lower interest rate if he chooses to secure a smaller loan for the $10,000 car.