Sadie is buying new furniture that costs $560. which is the most cost-effective option? a: credit card with an apr of 18 percent and no grace period

b: store credit with an apr of 22 percent

c: personal loan with an apr of 18 percent and an application fee of $50

d: credit card with an apr of 18 percent with a grace period of twenty-five days

Question

Averie Sanders

Business

17 June, 08:14

Sadie is buying new furniture that costs $560. which is the most cost-effective option? a: credit card with an apr of 18 percent and no grace period

b: store credit with an apr of 22 percent

c: personal loan with an apr of 18 percent and an application fee of $50

d: credit card with an apr of 18 percent with a grace period of twenty-five days

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Answers (1)

Know the Answer?

Jeremy Harris · Answer 1

D) credit card with an apr of 18 percent with a grace period of twenty-five days

Explanation:

Finance is based on the premise that the value of money increases as time passes, so Sadie must look for the option that charges her the lowest APR and gives her some type of grace period or longer payment schedule.

Options B and C are the most expensive ones: B has the highest APR and C charges an application fee.

Option D is better than option A because it grants a grace period, a short one, since it's basically a month. A short grace period is better than no grace period.