The total cost of purchasing a stereo or television with cash is ________ the cost when using credit cards to finance the same assets.
A) the same as
B) greater than
C) less than
D) less stable than

Question

Quizplus · Accepted Answer

When using credit cards, interest accrues over time, increasing the total cost of the asset. Therefore, the total cost of purchasing with cash is less than the cost when using credit cards to finance the same asset.

The Total Cost of Purchasing a Stereo or Television with Cash