You want to buy a used all-train vehicle (ATV) that costs $2800.00. You have 1100.00 in savings and can save $200.00 more a month. Your local credit union offers loans at 6.50% per annum over a term of 12 months. You have a bank credit card with an interest rate of 20.00% per annum. You have a balance of $100.00 on your credit card.

A) Brainstorm as many different options as you cab for buying the ATV and paying off your credit card debt.
B.) Discuss the advantages and disadvantages of each option.
I do not understand any of this stuff please help me out here.

Sure! Let's break it down step by step.

A) First, let's brainstorm different options for buying the ATV and paying off your credit card debt:

Option 1: Using your savings - You can use the $1,100 in savings to pay towards the ATV and $100 towards your credit card debt, leaving you with $1,000 in savings and a $2,700 balance on the ATV.

Option 2: Taking a loan from your local credit union - You can apply for a loan of $2,800 from the credit union to buy the ATV. This would leave you with no money for paying off your credit card debt.

Option 3: Saving monthly and using savings for ATV - You can save $200 each month. In 14 months ($1,100 savings + $200 * 7 months), you would have accumulated $2,900. You can then use this amount to buy the ATV outright, leaving no money for paying off your credit card debt.

Option 4: Saving monthly and paying off credit card debt first - You can save $200 each month and use your savings to pay off your credit card debt, leaving no debt balance before buying the ATV. Assuming you save for 6 months ($1,100 savings + $200 * 6 months), you would have $2,300 saved. You can then use $2,300 towards the ATV, leaving a balance of $500 that you can either pay off with your savings or take a loan for.

Option 5: Using credit card for the ATV - You can use your credit card to purchase the ATV, which has a balance of $100. This would leave you with $2,900 on your credit card and no savings.

Option 6: Combining savings, credit card, and loan - You can use a combination of your savings, credit card, and a loan to buy the ATV. For example, you can use $1,100 from savings, pay off the $100 credit card debt, leaving you with $800, and take a loan of $2,000 from your credit union to cover the remaining ATV cost.

B) Now, let's discuss the advantages and disadvantages of each option:

Option 1: Using your savings
Advantages: You don't have to take on any additional debt. You can own the ATV outright.
Disadvantages: You will have a lower amount in savings and you still have credit card debt.

Option 2: Taking a loan from your local credit union
Advantages: You can buy the ATV without using all of your savings.
Disadvantages: You will have a loan to pay off, plus credit card debt.

Option 3: Saving monthly and using savings for ATV
Advantages: You can buy the ATV with no debt.
Disadvantages: It will take 14 months to accumulate enough savings, and you won't be able to pay off your credit card debt.

Option 4: Saving monthly and paying off credit card debt first
Advantages: You can eliminate your credit card debt before taking on new debt.
Disadvantages: It will take time to save enough for the ATV, and you may still need to take on debt.

Option 5: Using credit card for the ATV
Advantages: Convenient and quick option for purchasing the ATV.
Disadvantages: You will have a higher credit card balance with a high interest rate.

Option 6: Combining savings, credit card, and loan
Advantages: Allows you to spread out the costs and potentially get a lower interest rate on the loan.
Disadvantages: You will still have debt to manage and potentially higher interest payments.

Remember, these options are just suggestions, and the best option for you may depend on your personal financial situation and priorities. It's always a good idea to consider the interest rates, repayment terms, and your ability to comfortably pay off the debt.