NAME: DATE: Directions: did the math on a laptop deal and realized the bargain wasn’t a bargain at all. See if you can spot a bargain in the offers below. For each purchase, check the option that you think would be the best credit deal. Best Purchase Monthly Total Deal Option Payments Interest Total Cost Purchase a Computer Store Financing: 24 monthly payments at $1,400 $ $ $ 11.9% APR Credit Card: 36 monthly payments at $1,400 $ $ $ 15.9% APR Purchase a Stereo System Store Financing: 12 monthly payments at $800 $ $ $ 13.5% APR Credit Card: 24 monthly payments at $800 $ $ $ 18% APR Purchase a Car Car A: 7% APR for 60 months $20,000 $ $ $ Car B: 3.9% APR for 30 months $23,000 $ $ $ Purchase a Big Screen TV Store Financing: no payments for three months, but monthly interest charges start $1,900 $ $ $ immediately at 10% APR; then six months of payments. Credit 11% APR for 12 months $1,900 $ $ $ Purchase a Truck Option A: $1,500 cash back now with $25,000 $ $ $ 2.9% APR for 48 months Option B: $0 cash back and 0.9% APR for $25,000 $ $ $ 36 months
NAME: DATE: Directions: did the math on a laptop deal and realized the bargain wasn’t a bargain at all. See if you can spot a bargain in the offers below. For each purchase, check the option that you think would be the best credit deal. Best Deal Option Purchase Monthly Payments Total Interest Total Cost Purchase a Computer Store Financing: 24 monthly payments at 11.9% APR $1,400 $ $ $ Credit Card: 36 monthly payments at 15.9% APR $1,400 $ $ $ Purchase a Stereo System Store Financing: 12 monthly payments at 13.5% APR $800 $ $ $ Credit Card: 24 monthly payments at 18% APR $800 $ $ $ Purchase a Car Car A: 7% APR for 60 months $20,000 $ $ $ Car B: 3.9% APR for 30 months $23,000 $ $ $ Purchase a Big Screen TV Store Financing: no payments for three months, but monthly interest charges start immediately at 10% APR; then six months of payments. $1,900 $ $ $ Credit 11% APR for 12 months $1,900 $ $ $ Purchase a Truck Option A: $1,500 cash back now with 2.9% APR for 48 months $25,000 $ $ $ Option B: $0 cash back and 0.9% APR for 36 months $25,000 $ $ $
task_pickanoption.docx