4
QuizMultiple Choice

Understanding Credit — Quiz

Question 4 • Personal Finance

Sal and Jen went to the store together, and each bought the same car stereo. Sal used a card to make the purchase, and the full amount was immediately withdrawn from his bank account. Jen used a card to make the purchase, and she received a bill within 15 days of the purchase. She paid 21 point 3 0 dollars for the next 18 months until the bill was paid in full. The full payment included 58 point 6 0 dollars in interest. Which statement describes Sal’s purchase?

Answer
A
Sal used a debit card and paid a total of 383 point 4 0 dollars for the stereo.
B
Sal used a credit card and paid a total of 383 point 4 0 dollars for the stereo.
C
Sal used a debit card and paid a total of 324 point 8 0 dollars for the stereo.
D
Sal used a credit card and paid a total of 324 point 8 0 dollars for the stereo.

Explanation

Jen paid 18 × $21.30 = $383.40 altogether. Subtracting the $58.60 in interest gives the stereo’s price: $383.40 − $58.60 = $324.80. Sal’s payment was withdrawn from his bank account immediately, which describes a debit card, so Sal used a debit card and paid $324.80.

AI-written and checked against the verified answer.

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