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A student with $33,350 student loan is offered two payment plans to repay their debt.

Plan 1: Monthly payment of $361.91 over a period of 10 years, which corresponds to a compound interest rate of 5.4% compounded monthly.
Plan 2: Monthly payment of $473.49 over a period of 7 years, which corresponds to a compound interest rate of 5.0% compounded monthly.

Determine which plan offers the student a lower cost of credit. Find the lower credit cost. Round the answer to two decimal places as needed.

To determine which plan offers the student a lower cost of credit, we need to calculate the total payments made under each plan and compare them.

For Plan 1, the monthly payment is $361.91 and it stretches over a period of 10 years, or 10 x 12 months = 120 months. The total payment made under this plan is therefore 120 x $361.91 = $43,429.20.

For Plan 2, the monthly payment is $473.49 and it stretches over a period of 7 years, or 7 x 12 months = 84 months. The total payment made under this plan is therefore 84 x $473.49 = $39,757.16.

To find the cost of credit for both plans, we subtract the original loan amount of $33,350 from the total payments made.

For Plan 1, the cost of credit is $43,429.20 - $33,350 = $10,079.20.

For Plan 2, the cost of credit is $39,757.16 - $33,350 = $6,407.16.

Therefore, the lower cost of credit is $6,407.16, which corresponds to Plan 2.

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 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 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 a 7% interest.

Dallas should use Method 1 and pay for the refrigerator using the debit card with a $600 balance. This way, Dallas will not incur any interest charges or fees. By using the debit card, the purchase will be made with the funds that Dallas already has available, ensuring that there are sufficient funds to cover the purchase and minimizing any potential interest or fees.

that isnt right

Apologies for the confusion. In that case, Dallas should use Method 2 and pay for the refrigerator using the credit card with a $1,000 credit limit. However, it is important for Dallas to pay off the entire balance before the statement's due date to avoid any interest charges. By doing so, Dallas can minimize the interest that may be incurred on the credit card purchase.