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% intrest
Based on the given information, option 1 seems to be the better choice for Dallas. Here's why:
Option 1: Credit Card
- The credit limit is $1,000, which is more than enough to cover the $799 refrigerator cost.
- Dallas can choose to pay for the refrigerator in full, ensuring there are sufficient funds to cover the purchase.
- If he pays the amount not in full by the statement's due date, there might be a 5% interest. However, Dallas can avoid this by paying the full amount before the deadline, minimizing any potential interest charges.
Option 2: Payday Loan
- The payday loan is exactly the amount needed for the refrigerator.
- The interest rate for the loan is 7%. Since Dallas is looking to minimize interest, this option may not be ideal compared to the credit card option, which offers the possibility to avoid interest charges altogether.
Therefore, option 1, using a credit card with a $1,000 credit limit, seems to be a better choice for Dallas to purchase the refrigerator, ensuring sufficient funds and minimizing potential interest charges.