Question

Grant saved $1,325 to purchase a lawn tractor that costs $1,600. Last month the tractor was on sale for 20% off. Grant did not buy the tractor last month because he spent $360 to go bungee jumping. Decide if the decision is financially responsible.

Answer 1

No, he is not financially responsible

Explanation:

Given that:

Amount saved for tractor purchase = $1325

Original cost of tractor = $1600

Amount spent on bungee jumping = $360

Discounted price of tractor :

$1600 - (1600 * 0.2) = $1280

Saved amount left after bungee jumping :

$1325 - $360 = $965

The saved amount had exceeded the discounted price, hence, the discount served as an opportunity to make the purchase, However, spending $360 from the saved amount meant that the amount left could not afford the tractor despite the discount. Hence, Missing out on such opportunity due to jumping shows lack of financial responsibility.