The Following Four Different Financing Schemes Have Been Offered to You

question 37

Multiple Choice

The following four different financing schemes have been offered to you for the purchase of a $30,000 car.Which one should you choose?

• A)$5,000 down with the balance paid in equal monthly payments of $624.70 per month for 48 months
• B)$0 down with equal monthly payments of $960 per month for 36 months
• C)$15,000 down and a final payment of $18,550 two years from now
• D)have it financed with a bank loan at a quoted rate of 9.75% with loan repayments made monthly

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Definitions:

Reaction Formation

A psychological defense mechanism where an individual unconsciously replaces unacceptable thoughts or feelings with their opposites.

Stressful Situation

Circumstances or events that induce a state of strain or tension, potentially causing psychological and physical reactions.

Hindrance Stressors

Stress-causing factors that hinder personal growth or goal achievement.

Stimulate Performance

The act of motivating or encouraging individuals or groups to improve their productivity or work output.