Louie is currently at a store looking to buy a grill for $ 89 $89dollar sign, 89. Louie has $ 20 $20dollar sign, 20 in cash. He gets paid weekly and would like to make small payments each week. He wants to ensure he gets the grill of his choice before it sells out. He does not need the grill till the summer ( 6 66 months from the purchase). Listed below are different methods of paying for the grill. Method Terms Total Cash None $ 89 $89dollar sign, 89 Credit card 29.99 % 29.99%29, point, 99, percent APR, $ 25 $25dollar sign, 25 minimum monthly payment $ 89 + $89+dollar sign, 89, plus interest Layaway $ 4 $4dollar sign, 4 set up fee, $ 5 $5dollar sign, 5 payment minimum $ 93 $93dollar sign, 93 Based on the information given, which payment method works best for Louie?

Answer 1

The best payment method for Louie would be to pay in cash. Since he has $20 in cash, he can cover a portion of the cost upfront and save the rest until he has enough to buy the grill. This way, he will not have to pay any interest or additional fees associated with credit card or layaway options. By choosing cash, Louie can avoid incurring any extra costs and can have the grill before the summer without any financial burden.