Question

how can reading an amortization table benefit a potential car buyer?
it details the cars warranty coverage, specifying what repairs and services are included over time.
it catalogs the cars features and specifications, detailing everything from horsepower to tech amenities.
it outlines the distribution of payments toward interest and principal over the loans duration.
it reveals the cars performance metrics, including acceleration and fuel efficiency.

Explanation:

An amortization table shows how each payment is split between principal and interest over the loan's duration. This helps buyers understand the financial breakdown of their car loan payments, allowing them to plan budgets, see equity build - up (principal reduction), and total interest costs.

Answer:

It outlines the distribution of payments toward interest and principal over the loan's duration.