Jacob Needs to Borrow $19 000 to Purchase a Car

question 10

Multiple Choice

Jacob needs to borrow $19 000 to purchase a car.If the interest rate is seven percent compounded monthly,which of the following is true when considering a five,seven or ten year term?

• A)If he selects a seven year term he will save interest by keeping his payments to $286.76 per month.
• B)If he selects a ten year term he will save $2385.28 in interest compared with the seven year term.
• C)If he selects a five year term he will save $1514.55 in interest compared with the seven year term.
• D)The overall interest will be the same,regardless of the term.

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Definitions:

Crisis Phase

A critical period during which a decisive change in a person's condition or in a situation occurs, necessitating immediate and appropriate action to achieve stability.

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Adaptive

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Developmental Stressor

An event or condition that disrupts the normal developmental process, causing stress or adjustment challenges.