Question

an increase in which of the following will decrease the monthly payment?
A) trade-in value
B) interest rate
C) principal
D) none of the above help?!

Answer 1

can you define what each option actually contributes?

Answer 2

@amistre64 no i cant, thats why i need help please

Answer 3

im assuming you are taking a course about htis stuff, and that they have defined them in your lesson material. if youve read your material, you should have some notion as to at least on e or two of the options

Answer 4

if anything try an educated guess, all correct you if need be. which one of these actually reduces the amount of money that must be borrowed??

Answer 5

@amistre64 yes im taking personal finance. I think its "principal" but i dont want to be wrong.

Answer 6

being wrong is fine :)

prinicipal is the amount of money borrowed, an increase in principal generally increases the payments needed

try again?

Answer 7

@amistre64 interest rate?

Answer 8

@amistre64 im sorry if it seems like im guessing, I really dont know this stuff good.

Answer 9

at least we can cover the definitions this way :)

interest is the amount of money that is paid for the loan. if we increase interest, we increase the amount we owe ...

one more try :)

Answer 10

@amistre64 trade-in value?

Answer 11

trade in value is the amount of money (or equivalent value) that we have to pay up front. the amount of the value of a trade in reduces, lowers, makes less, the amount we have to borrow and pay back. so yes. a higher trade in value reduces the payments of the loan.

Answer 12

@amistre64 loll thankyouu so much

Answer 13

good luck :)