15
practice testMultiple Choice

Practice Test

Question 15 • Financial Algebra/Mathematics

What is a potential financial advantage of Antonio choosing to pay with cash?

Answer
A
allows him to resell equipment without any loan obligations
B
improves his credit rating through regular payments
C
reduces the total cost by avoiding interest
D
offers flexibility in budgeting monthly expenses

Explanation

Paying cash means Antonio does not borrow money to buy the equipment, so he avoids paying interest on a loan. That can reduce the total cost compared with financing the purchase. The correct choice is “reduces the total cost by avoiding interest.”

AI-written and checked against the verified answer.

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