Question

If Ryan pays his car insurance for the year in full, he will get a credit of $28. If he chooses to pay a monthly premium, he will pay a $10 late fee for any month that the payment is late.
a. Which of these values could be represented with a negative number? Explain.

Answer 1

The one year-plan would have a credit, so it would have a positive sign. In the monthly plan, there is a high risk of being late in paying the bills. That's why a fine of $10 is given for every month that you are late. If you are not time conscious and you end up being late every month, it would give you a negative balance.