Case-Based Critical Thinking Questions
Case 3-2
Pamela is getting ready to purchase her first condominium.To get ready for the mortgage process,she gathers her Excel spreadsheets that contain all of her financial information.
-Pamela needs to borrow $30,000 as a down payment for her condominium.This amount will be the ____.
A) Maximum
B) Principal
C) PMT
D) Compound principal

Question

Quizplus · Accepted Answer

The down payment required for the purchase of the condominium is the principal amount that Pamela needs to borrow. Option A is incorrect as it implies that the down payment is the maximum amount that Pamela can borrow, which is not the case. Option C is incorrect as PMT stands for payment amount, which is not relevant in this context. Option D is incorrect as there is no such term as compound principal in finance.