Question

It will take Cody 3 months to save up enough money to purchase a stereo. He has a credit card with a 12% interest rate. Cody’s friend Mark says it will cost Cody less money if he saves for 3 months instead of using the credit card. Is Mark correct?  Mark is correct.

If Cody uses the credit card, he will have to pay interest during each month in which he does not pay off the balance of the card. If he saves money, he will not have to pay interest.

Answer 1

Sample Response: Mark is correct. If Cody uses the credit card, he will have to pay interest during each month in which he does not pay off the balance of the card. If he saves money, he will not have to pay interest.

Step-by-step explanation:

Answer 2

ANSWER: Mark is correct

EXPLANATION: Mark's idea was to save Cody from paying interest if he swipes his credit card and his idea to save money for 3 months was correct. Cody needs to save money for 3 months to save money enough for the stereo. If he swipes the credit card, he will have to pay interest for 3 months or as long as he saves up enough money to repay the credit card bill. So, if avoid the interest payment, it is a safer idea for Cody to save money for 3 months and then buy the stereo.