Question

Read the scenario.

Bill recently moved into a new apartment. He wants to purchase a new television. Bill needs to decide between paying cash for a traditional model television or using credit for a newer HD version.

Which are disadvantages of using credit?

(Select all that apply.)

Using credit will cost Bill more money over time.

Using credit may tempt Bill to buy more than he can afford.

Bill will have to wait until he pays for his purchase in full before he actually gets it.

Bill will have to make his purchase online rather than going to a store.

Answer 1

Using credit will cost Bill more money over time.

Using credit may tempt Bill to buy more than he can afford.

Answer 2

Using credit will cost Bill more money overtime

Using credit may tempt Bill to but more than he can afford .

Step-by-step explanation:

Buying in credit is an act of paying for purchased goods in a future date.This can be done through so many media but the most popular among them is the use of credit cards. The prices for credit sales mostly come with premium.

Buying in credit has so many disadvantages. Some of them are

Spending more on an item : By the time the charged interest are factored into the purchase price , the buyer ends up spending more.

Temptation to buy more : Buying on credit may tempt buyer to buy more than he budgeted on even needs considering the opportunity of buying to pay at a later date.