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in which kind of situation would it be more reasonable for a customer t…

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.

Explanation:

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.

Answer:

C. The customer needs to borrow money to pay for the appliance.