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5 January, 03:41

Anthony newton wants to buy a new sail boat. he makes a down payment of $10,000 which represents 20% of the value of the sail boat he is purchasing. in which way is anthony reducing his lender's risk?

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  1. 5 January, 04:07
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    Anthony is reducing his lender's risk because he is taking a larger stake in the asset he is purchasing. Because of the amount of money he put down as initial payment, he has reduced his own ability to lend that money out, thus reducing his lender's risk. Besides, he will have a favorable cost of credit because of the down payment.
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