Question

Kelsey and Cody want new living room furniture. They see a flyer in Sunday’s newspaper for XYZ, offering free money for 24 months (or so they think) . At the store, they pick out a leather sofa and two ottomans. The sofa is $1,499 and each ottoman is $299. Are they eligible for the promotion? Why or why not?

Answer 1

Whether they are eligible for the promotion or not depends exclusively on the payment terms they accept at the moment of acquiring the products. First of all, these promotions normally apply if the customer makes the purchase with a credit card. Secondly, if the customer accepts to pay the total amount in installments equal to 24 months or more, then they will be eligible for the free money promotion. However, the amount of interest paid at the end of this period will be higher in comparison to the amount that would have been paid if they paid it in a smaller period of time.