27
practice examMultiple Choice

Practice Exam

Question 27 • Personal Finance

Part B: What reduces total cost?

Answer
A
delaying payment
B
increasing interest
C
borrowing less
D
borrowing more

Explanation

Borrowing less reduces the amount of principal on which interest is charged. That means the total amount to repay, including interest, is generally lower. Delaying payment or increasing interest would tend to raise costs, and borrowing more would also increase the principal.

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