General Education Development (GED) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for your GED Exam with our comprehensive quiz. Study with flashcards and multiple choice questions, each providing hints and explanations. Set yourself on the path to success!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

A family wants to buy a new car. Which loan option would require the least amount of money overall, including the down payment and monthly payments?

Option A
Option B
Option C
Option D

The correct answer is: Option A

The option that requires the least amount of money overall is typically the one with the lowest interest rate, the most favorable terms, and possibly a higher down payment that reduces the total amount financed. When considering a loan for a car, it’s essential to look at the combination of the down payment and the total projected monthly payments across the duration of the loan. Choosing the option with the least expensive financing and lower total costs can help minimize the overall expenditure for the family. This approach can lead to savings on both interest and the total loan amount, resulting in less money spent over time. In contrast, options that may require lower initial payments but are associated with higher interest rates or extended terms could ultimately lead to higher overall expenditures, making them less financially advantageous. An understanding of how loan terms and interest rates impact the total cost can guide families in making informed financial decisions when purchasing a vehicle.