Question

question 2 of 8
margo wants to purchase a new car. she doesnt have enough in savings to
cover the cost. she decides to look into loans from her bank. how can
taking out a loan help margo with her car purchase?
select a response.
it can help by reducing her total amount of debt
it can help by not requiring any immediate down payment
it can help by spreading out the expense over time
it can help by having no impact to her credit score

Explanation:

• Option 1: Taking a loan increases debt (since she borrows money), so this is incorrect.
• Option 2: Most car loans require a down payment, so this is incorrect.
• Option 3: A loan allows Margo to pay for the car in installments over time, spreading the expense. This is correct.
• Option 4: Taking a loan and repaying it (or not) impacts credit score, so this is incorrect.

Answer:

C. It can help by spreading out the expense over time (Note: In the original options, it's the third option without a letter identifier, but following the format, we describe it as above. If we consider the options as presented with the third option being "It can help by spreading out the expense over time", that's the correct one.)