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A+student+wants+to+purchase+a+new+bicycle+that+costs+$350.+They+have+$150+in+cash+a+$50+gift+card+and+a+credit+card+with+a+%24500+limit.+Identify+the payment method that can cover the cost of the new bike

1. gift card
2. credit card
3. None of the payment methods will cover the cost of the new bicycle
4. cash

1 answer

To determine which payment methods cover the cost of the bicycle, we need to examine each option:

  1. Gift card: The gift card has a value of $50, which is insufficient by itself to cover a $350 bicycle.

  2. Credit card: The credit card has a limit of $500, which is enough to cover the cost of the bicycle.

  3. Cash: The student has $150 in cash, which is also insufficient on its own.

None of the alternatives (gift card or cash) can cover the total cost alone, but the credit card does.

Therefore, the payment method that can cover the cost of the new bike is:

2. credit card.