Question

Lakesha does not have enough in her bank account to use a debit card for the purchase of a bike she needs to get to work. She has to decide whether to use a credit card or to finance the bike through the store. Which questions should Lakesha answer before making her decision? Check all that apply.

Answer 1

Lakesha should ask about and compare interest rates between using credit or financing. These influence total price.

Answer 2

Explanation:

Lakesha cannot use her debit card to purchase a bike she needs because she doesn't have the required amount in the bank. She has a credit card as well. She can make the purchase using credit card but credit card involves an interest amount. Another option in front of her is to buy the bike on finance. Financing also involves paying interest amount. Now lakesha has to trade off between these two option and see which is the better one, and where she will have to pay less interest amount. She should opt that option which has less interest amount which she would have to pay.