Tom Needs a Car to Commute to Work and Has

question 61

Multiple Choice

Tom needs a car to commute to work and has found a suitable Honda Civic from a dealer for $8000.He has $3000 saved for it and can afford a monthly payment up to $250.Which of the following is the best (lowest total cost) financing option for him?

• A)Make a $2500 deposit and take a two year loan with monthly payments of $241.
• B)Make a $3000 deposit and take a two year loan with monthly payments of $221.
• C)Make a $2000 deposit and take a three year loan with monthly payments of $185.
• D)Make a $1000 deposit and take a three year loan with monthly payments of $210.

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Definitions:

WAIS

The Wechsler Adult Intelligence Scale is a test created for assessing the intelligence levels of adults and older adolescents.

Stanford-Binet

The widely used American revision (by Terman at Stanford University) of Binet’s original intelligence test.

Intelligence Test Scores

Numerical outcomes derived from assessments designed to measure cognitive abilities, including reasoning, problem-solving, and understanding complex ideas.

Bell-Shaped Pattern

A distribution in statistics that describes how data points are spread across several levels with a peak in the middle; commonly referred to as a normal distribution.