The Case Files Section Four People Pay A Different Price For The Same Digital Music Player
1. What are credit cards? Why do people use them? It’s a card someone can use to buy things with by borrowing money from a financial institution.
2. What is interest? How does interest affect credit card purchases? If you do not pay back the debt and the amount you spent on your credit card, the bank charges extra money on top of the original amount you have to pay which is called interest
3. What are the benefits of using a credit card? What are the drawbacks of using a credit card? You may not have the money at the time or in your hand to buy something so having the credit card and borrowing the money at the time is nice. The drawbacks can be over spending on the credit card and buying more than you can afford to pay back which only causes more problems for you financially in the future.
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In the case files section, four people pay a different price for the same digital music player? Why do the prices they paid differ? Explain the factors that affected each person's ultimate cost for the music play. The prices differ because for example, Kevin, payed more than the minimum and he reviewed statements and was responsible about it, so he paid approximately $360.00. Emma paid almost $715 because she didn’t pay her payments on time and sent the first one in late.
5. Which of the individuals made the best use of their credit card? Which made the worst? Why? Maria made the best use of her credit card because she paid it all of it off at the end of, and she didn’t have to pay any interest at all. Emma had the worst because she had to pay $715 instead of$350. She was irresponsible, and she didn’t pay on time, so she had to pay a lot more money than
normal
6. What should you look for when choosing a credit card? the annual percentage rate and any fees is what you should look for.
7. What is a "grace period"? How can it help you manage a credit card wisely? Grace period is the term used to describe a period of “grace”, or extra time from the original set deadline.
8. What are three strategies that you can use to use credit cards wisely? Know your credit limit. It’s important to know your personality when choosing a credit card. Are you a user or abuser of credit If you get a card with a credit limit of $10,000, will you run out and charge it up right away If so, you don’t need a credit card at all because it will get you in trouble.
2. What is interest? How does interest affect credit card purchases? If you do not pay back the debt and the amount you spent on your credit card, the bank charges extra money on top of the original amount you have to pay which is called interest
3. What are the benefits of using a credit card? What are the drawbacks of using a credit card? You may not have the money at the time or in your hand to buy something so having the credit card and borrowing the money at the time is nice. The drawbacks can be over spending on the credit card and buying more than you can afford to pay back which only causes more problems for you financially in the future.
4. …show more content…
In the case files section, four people pay a different price for the same digital music player? Why do the prices they paid differ? Explain the factors that affected each person's ultimate cost for the music play. The prices differ because for example, Kevin, payed more than the minimum and he reviewed statements and was responsible about it, so he paid approximately $360.00. Emma paid almost $715 because she didn’t pay her payments on time and sent the first one in late.
5. Which of the individuals made the best use of their credit card? Which made the worst? Why? Maria made the best use of her credit card because she paid it all of it off at the end of, and she didn’t have to pay any interest at all. Emma had the worst because she had to pay $715 instead of$350. She was irresponsible, and she didn’t pay on time, so she had to pay a lot more money than
normal
6. What should you look for when choosing a credit card? the annual percentage rate and any fees is what you should look for.
7. What is a "grace period"? How can it help you manage a credit card wisely? Grace period is the term used to describe a period of “grace”, or extra time from the original set deadline.
8. What are three strategies that you can use to use credit cards wisely? Know your credit limit. It’s important to know your personality when choosing a credit card. Are you a user or abuser of credit If you get a card with a credit limit of $10,000, will you run out and charge it up right away If so, you don’t need a credit card at all because it will get you in trouble.