Vicky is trying to decide whether to finance her purchase of a used Mustang conv

Question

Vicky is trying to decide whether to finance her purchase of a used Mustang convertible. What questions should Vicky ask herself before making her decision? (LO5.1)

List advantages and disadvantages of using credit. (LO5.1)

Alka plans to spend $5,000 on a plasma television and home theater system. She is willing to spend some of her $9,000 in savings. However, she wants to finance the rest and pay it off in small monthly installments out of the $400 a month she earns working part-time. How might she obtain a low-interest loan and make low monthly payments? (LO5.2)

Explanation / Answer

Questions to be asked by Vicky?

Advantages & disadvantages of credit:

Advantages:

Disadvantages:

Option for Alka:

Alka can get a low interest payment by making a large down payment & a small installment payment by spreading the payments over a long time period.

Related Questions

Navigate

• Browse (All)
• Browse V
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.