On July 1, 2022, Sue You purchased a new car for $10,000 with a 30% down payment in cash and the remainder financed via a bank loan with the interest rate at prime + 1. How would her net worth change as a result of this purchase on July 1, 2022? Select one: a. Net worth has increased by $3,000. b. Net worth has decreased by $3,000. c. Net worth may go up or down depending on the time of car delivery, d. Net worth has not changed.
On July 1, 2022, Sue You purchased a new car for $10,000 with a 30% down payment in cash and the remainder financed via a bank loan with the interest rate at prime + 1. How would her net worth change as a result of this purchase on July 1, 2022? Select one: a. Net worth has increased by $3,000. b. Net worth has decreased by $3,000. c. Net worth may go up or down depending on the time of car delivery, d. Net worth has not changed.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:On July 1, 2022, Sue You purchased a new car for $10,000 with a 30% down payment in cash and the remainder financed via a bank loan
with the interest rate at prime + 1. How would her net worth change as a result of this purchase on July 1, 2022?
Select one:
a. Net worth has increased by $3,000.
b. Net worth has decreased by $3,000.
c. Net worth may go up or down depending on the time of car delivery.
d. Net worth has not changed.
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