You and your friend go to the store to buy a new set of headphones when they release. The headphones cost $150. You use your debit card to buy the headphones. Your friend uses their credit card to buy the headphones. Their credit card has a monthly interest rate of 2%. If it takes your friend a year to pay off the headphones, who spends less on the purchase and by how much?(1 point)

Answer 1

You: $150

Your friend: $150 + ($150 * 0.02 * 12) = $150 + $36 = $186

You spend less by $36.