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Gucchi:

Chandler has been saving money from his paycheck each month to buy a computer. Joey doesn't have the cash to buy a computer, but he has a Big Buy store credit card and uses it to buy a computer. Which of the following best compares the results of their choices? Chandler will have to wait to buy a computer, but he will not pay interest charges, unlike Joey. Joey can avoid paying sales tax by purchasing the computer with his credit card, unlike Chandler. Chandler will use his saved money for the computer, while Joey can avoid payment by using credit. Joey does not have to wait to buy a computer, and he can pay less money than Chandler overall.

Gucchi:

Am I right with B or is it A?

Gucchi:

@astrid1

Astrid1:

It's a. I hope that doesn't count as a direct answer.

Gucchi:

Can you give an explanation why? thank you

Gucchi:

I looked online and people say its false

Gucchi:

By using credit card, Joey will avoid paying sales-related taxes, or will have the reduced tax rate. This is because the credit card provides a form of payment, which in addition to allowing a purchase to be made quickly, managed to make the customer escape some, if not all, of the fees on products sold. On the other hand, Chandler has no credit card and is raising money to buy a computer. The problem with Chandler's payment method is that there is no device that frees you from paying taxes on the purchased product.

Gucchi:

Thats what one guy said

Gucchi:

he was going with B

Astrid1:

I may be wrong. I got it off another QC post and this dude said it was correct. But, Joey has a best buy credit card so he's going to have to pay it all back in/at a particular time. Interest will be tacked onto his loan to buy the computer. Where's Chandler is using his own money and not a credit card so he won't have to pay interest.

Astrid1:

Does that make sense?

Gucchi:

Yes

Astrid1:

Okay, does that fulfill my proof that the answer may be correct?

Gucchi:

Yeah, i'll go with A, thanks for the explanation

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