Branson can choose to pay for a new television by taking out a store loan using his credit card, using his debit card, or taking out a bank loan. Which of these payments methods is likely to have the highest interest rate

Question

Mathematics

Miley Yang

21 September, 21:01

Branson can choose to pay for a new television by taking out a store loan using his credit card, using his debit card, or taking out a bank loan. Which of these payments methods is likely to have the highest interest rate

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Answers (1)

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Danny Yoder · Answer 1

credit card

Explanation:

Since Branson is choosing to pay for a television, then this means that the amount of money he is going to pay is hefty because televisions are considered a large expense.

Among the payment methods that would most likely have the highest interest rate is the "credit card." Credit card's interest rate can accumulate, especially if you haven't settled your last month's due. This can also affect your credit score.

Everything boils down to how discipline you are when it comes to paying back the money you owe. If you're a good payer, your credit score will also be good thus allowing you to have a 0% interest rate. However, if you're a bad payer, then your credit card interest can skyrocket to more than 10%.