Question $15$ of $16$

In what situation are you incorrectly applying the concepts of time value of money?

Select an answer:

making a large down payment on a new car with a six$-$year loan to lower the monthly payments

deciding to pay off a $30-$year mortgage loan after $20$ years at a discount of the balance due

paying points on a mortgage loan for a house you intend to live in for $10$ years or more

choosing to buy a new car because the dealer is offering a zero percent interest rate