Dallas needs a new refrigerator that costs $799. Which of the following payment methods should Dallas use to pay for the refrigerator? Dallas wants to make sure there are sufficient funds to cover the purchases and minimize the interest, if any, that will be needed to pay for the purchases. Method 1: He should use the debit card with a $600 balance. Method 2: He should use the credit card with a $1,000 credit limit and a potential 5% interest on the purchases if the amount is not paid in full by the statement’s due date. Method 3: He should use a $799 payday loan with 7% interest.(1 point) To ensure that there are sufficient funds and to minimize potential interest, Dallas should use payment Method
600 dollars won't cover the amount of the fridge (799)
I apologize for the mistake in my previous response. In that case, Dallas should use Method 2: He should use the credit card with a $1,000 credit limit and a potential 5% interest on the purchases if the amount is not paid in full by the statement's due date.
By using the credit card, Dallas can make the full purchase of the refrigerator. He has a credit limit of $1,000, which is greater than the cost of the refrigerator. If he pays off the full amount by the statement's due date, he can avoid any interest charges.
To ensure that there are sufficient funds, Dallas should plan to pay off the full amount of $799 before the due date. This will minimize the interest he may incur on the purchases.
Method 1: He should use the debit card with a $600 balance.
Using the debit card with a $600 balance will ensure that there are sufficient funds to cover the purchase. There will be no interest charges associated with this method because Dallas will be using his own money. This is the best option for Dallas to minimize potential interest.