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different options to pay for the new system.
• Option A is to charge the purchase on a revolving credit account. The store will charge a 1.5% monthly finance charge on each unpaid balance at the end of the
month. You intend on paying more than the minimum payment amount each month. You intend on making a $200 per month payment each month. When the
balance falls below $200 you will pay off the remaining amount.
• Option B is to wait and save up $200 a month until you have enough to pay for the system in cash. This will take at least 5 months. However, you know that in 3
months there will be a price-hike of $40. So, by the time you are ready to purchase the system, the total price will be $1,040.
Question 1
If you chose Option A, what will be the total finance charge you will have paid after the entire balance is paid off? Round your answer to the hundredth place
Question 2
What are the advantages of choosing Option A? You may wish to search online for advantages to using a credit card or revolving credit for purchases. Your answer must be in
paragraph form using complete sentences
Question 3
What are the advantages of choosing Option B? You may wish to search online for advantages to saving and paying cash for a purchase. Your answer must be in paragraph
form using complete sentences.
After you made your initial post, reply to at least two other classmates' posts and critique their responses. Tell your classmates:
Explain why you agree or disagree with their responses about the advantages of choosing Option A and Option B.
• What is something you would suggest they do to improve or clarify their response?
.
Posted Tue Aug 2, 2022 at 7:21 am
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