Question

Juanita is saving up to buy a new truck. She wants to put $4000 down and borrow the rest. That downpayment will lower the monthly payment so she can easily afford a new truck. She has been saving for18 months and has half the money. It will take her about the same amount of time to save up the otherhalf. Is this a good use of credit?
(1 point)
Yes, borrowing money is always good for business.
No, a smaller down payment would get her a new truck today.
Yes, it is a major purchase and Juanita has figured out what she can afford.
No, Juanita should save for the full price of the truck no matter how long it takes

Answer 1

Yes — "Yes, it is a major purchase and Juanita has figured out what she can afford."

Reason: She’s saved a sizable down payment to lower the loan and monthly payment, and has a clear plan that makes the payments affordable. (She should still check interest rates and total loan cost.)