Question

veronique and lily each bought a piece of luggage that had the same price in different stores. the table below shows how they will pay for the item.

payment for purchases

name	payment type	payment amount (including finance charges)	number of months to pay for item
lily	credit card	$35	7

who made the better financial decision and why?

• veronique because her payments are lower.
• veronique because her final cost, including finance charges, is less than lily’s.
• lily because she is paying off her purchase sooner.
• lily because her final cost, including finance charges, is less than veronique’s.

Explanation:

Step1: Calculate Veronique's total cost

To find Veronique's total cost, we multiply her monthly payment by the number of months. Her monthly payment is $25 and she pays for 10 months. So the total cost is $25\times10 = 250$.

Step2: Calculate Lily's total cost

Lily's monthly payment is $35 and she pays for 7 months. So her total cost is $35\times7 = 245$.

Step3: Compare the total costs

Now we compare the two total costs. Veronique's total cost is $250 and Lily's is $245. Since $245 < $250, Lily's final cost including finance charges is less than Veronique's.

Answer:

Lily because her final cost, including finance charges, is less than Veronique’s.