Multiple Choice
Lee is planning to buy furniture worth $7000 from Leons. He can buy on his MasterCard and pay it within 7 days following the grace period of 21 days. His second option is to buy on the personal (unsecured) line of credit and pay it back after 6 months. His third option is to use secured line of credit and pay it back in 9 months. MasterCard charges an interest rate of 19.9%. Unsecured line of credit charges a rate of prime (3%) plus 3% and secured line of credit charges a rate of prime plus 0.5%. What is his best option?
A) MasterCard
B) Unsecured line of credit
C) Secured line of credit
D) All options are the same
E) Either secured or unsecured line of credit.
Correct Answer:
Verified
Correct Answer:
Verified
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