Question

dallas needs a new refrigerator that cost 799 which of the following payment methods should Dallas use to pay for the refrigrator? Dallas wants to make sure there are sufficient funds to cover the purchases and miminez the intrest if any that will be needed

option 1 he should use a credit card with a 1,000 credit limit and a potential 5% intrest on the puchases if the amount not pain in full by the statements due date

option 2 he should use a 799 payday loan with an intrest rate of 7%

Answer 1

Option 1: Dallas should use a credit card with a $1,000 credit limit and a potential 5% interest on the purchases if the amount is not paid in full by the statement's due date.

This option allows Dallas to have a higher credit limit, providing more flexibility with future purchases and expenses. Additionally, if Dallas pays off the refrigerator cost in full before the statement's due date, there will be no interest charged. This ensures sufficient funds are available to cover the purchase, minimizing any potential interest.

Option 2: Dallas should not use a payday loan with an interest rate of 7%.

Payday loans often have very high-interest rates, which can quickly accumulate large amounts of debt. Using a payday loan to pay for a refrigerator would likely result in significant interest charges and potentially put Dallas in a financially difficult situation. It is not recommended to use a payday loan for this type of purchase.