QUESTION IMAGE
Question
in which kind of situation would it be more reasonable for a customer to pay for a new appliance with a credit card rather than with a personal check?
the appliance has a relatively low purchase price.
the appliance comes with a good product warranty.
the customer needs to borrow money to pay for the appliance.
the customer needs to avoid making regular interest payments.
Brief Explanations
To determine when using a credit card is more reasonable than a personal check, we analyze each option:
- Option 1: Low price doesn't favor credit card over check (check is fine for low amounts).
- Option 2: A good warranty doesn't relate to payment method choice.
- Option 3: If a customer needs to borrow money, a credit card allows borrowing (unlike a personal check, which requires available funds in the account).
- Option 4: Credit cards often have interest, so avoiding interest would favor a check, not a credit card.
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C. The customer needs to borrow money to pay for the appliance.