Answer Happy

Consider the following cases examining the benefits of making a down payment. Case 1: You want to buy a car. Suppose you borrow $10,000 for two years at an APR of 4%. Case 2: You want to buy a car. Suppose you borrow $10,000 for two years at an APR of 4% and make a down payment of $3,000. This means you borrow only $7,000. What are the advantages of making a down payment? (Select all that apply.) reduction in the total interest paid over the life of the loan Increase in the total interest paid over the life of the loan increase in term of the loan reduction in term of the loan increase in monthly payment reduction in monthly payment