Question

Which of these is the best definition of down payment?


The amount borrowed.


A percentage of the purchase price of the car that reduces the loan amount.


The loan amount minus the value of the car.

Answer 1

Down payment is typically a percentage of the purchase price of the car that reduces the loan amount. In other words, it money that you provide to the seller when you purchase of an expensive product or service.

Answer 2

Down payment is an initial payment made when something is bought on credit.

Answer 3

I think it's B.

Answer 4

is it B.

Answer 5

A down payment is a type of payment made in cash during the onset of the purchase of an extravagant good or accommodation.

Answer 6

Therefore the correct answer to this question is (B)