Atrade-in is most closely related to which of the following? a. a down payment, because it reduces the amount financed. b. an interest payment, because it represents value given to the dealer. c. the list price, because it is derived from the price of a car. d. amortization, because it is a way of paying for car financing.

The correct answer is A.) A down payment, because it reduces the amount financed.

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a.  A down payment, because it reduces the amount financed.

Step-by-step explanation:

When a car dealership offers you an amount for trade-in on your car, this amount is taken off of the price of the new car.  This means you finance less after the trade-in than you would have before.

This has the same effect as making a down payment; it lessens the amount you finance.

this is the formula: v = the value of investment at the end of the time period

p = the principal amount (the initial amount invested)

r = the annual interest rate

n = the annual frequency of compounding (how many times a year interest is added)

t = the number of years the money is invested

^ means raise to the power of