Zach bought a car for $20,000. He paid a $5,000 down payment and will pay $450 per month for 5 years. What type of liabili

Question

Zach bought a car for $20,000. He
paid a $5,000 down payment and
will pay $450 per month for 5
years. What type of liability is this
for Zach?
A. liquid
B. long-term
C. short term
D. budget

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niczorrrr 4 years 2021-08-17T06:51:17+00:00 1 Answers 14 views 0

Answers ( )

  1. danthu
    0
    2021-08-17T06:52:48+00:00
    Reply

    Answer:

    The correct answer is B. Long-term.

    Step-by-step explanation:

    Since Zach has bought a car for $ 20,000 paying a down payment of $ 5,000 and monthly payments of $ 450 per month for 5 years, he will be paying a total of $ 32,000 for that car (5,000 + 450 x 12 x 5). Thus, the responsibility that Zach has incurred forces him to maintain his monthly payment obligation for 5 years, thus becoming a long term liability.

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