Question

linda owes $620 on her credit card, which has a credit limit of $1900. she also has a debit card linked to a checking account with an available balance of $1110. use this information to answer the questions below. (a) linda is going to purchase an item with her credit card. what is the most she can spend? (b) linda is going to purchase an item with her debit card. what is the most she can spend? (c) suppose an item costs $1200. which card can be used for the entire purchase? select all that apply. if neither card can be used, check
either\. credit card debit card neither

Explanation:

Step1: Calculate credit card spending limit

The credit limit is $1900 and she owes $620. The amount she can spend is the credit limit minus the amount owed.
$$1900 - 620$$

Step2: Calculate debit card spending limit

The available balance on the checking account (used with debit card) is the maximum she can spend. So it is $1110.

Step3: Check for $1200 purchase

For credit card: $1900 - 620=1280>1200. For debit card: $1110 < 1200.

Answer:

(a) $1280
(b) $1110
(c) Credit card