Can someone please help?
Read through the following scenarios and decide whether the use of credit is a go SHOULD YOU BORROW? 7. Ana Rodriguez graduated from high school last Within a few years of finishing her training, she year with a good grade-point average. She works could earn more than $50,000 a year. But Ana's as a receptionist at a physical-therapy clinic, parents cannot afford to pay for the training And making $8.50 an hour. She would like to become a would need to complete. Ana has investigated physical therapist. The work appeals to her, and student loans, but she knows she would have to salaries for physical therapists are excellent. pay back anything she might borrow over a 10- to the dance. She finds one nice dress for $79-an year period. Should Ana take out a student loan? amount she could pay in cash. However, she also finds a spectacular dress priced at $169. She could 8. Dave Larson is an avid stamp collector. For a buy this dress with her credit card. Sure, it's a lot long time he has wanted to own a Bolivian Double of money, Felicia thinks, but she owes it to her Eagle stamp. This stamp is very hard to find, and public and her date to look dazzling for the big Dave believes it will gain value in the future. Dave event. Should Felicia put the spectacular dress on learns that his favorite stamp store has a Bolivian her credit card? Double Eagle for sale, priced at $200. Dave doesn't have that much money in savings, but he is afraid 12. Mike Chiang is a community-college student. that if he doesn't buy the stamp now, someone He has three credit cards, all charged close to the else will. Should he use his credit card to buy the limit. Mike manages to make the minimum stamp? payments each month, thanks to his part-time job at Pizzas-R-Us. Mike really, really wants to go with 9. Caroline Potter is a single mother with two his friends on a spring-break trip to Padre Island, small children. She commutes 15 miles to work Texas, but he doesn't see how he can afford to do five days a week, driving an old car that has it. Then he receives a friendly letter from one of developed several problems. Caroline has been his credit-card companies. "Dear Mr. Chiang," it late to work twice in the last month because of car begins, "Since you are one of our most valued problems, and each of the problems has saddled customers and always make your payments on her with a large repair bill. Should Caroline buy a time, we are raising your credit limit by $2,000." better used car, even though she will have to Mike is thrilled! Now he can go to Padre Island borrow money and take on monthly car with his friends. Should he do it, charging his payments? expenses to his card? 10. Jake Purdy just got a great job working as a 13. Bill Baker needs a new mattress and box salesman. His salary isn't high, but he can earn spring. He's still sleeping on the same set he used excellent commissions if he makes a lot of sales. as a kid, and his back is killing him. He has started Jake has a reliable car, but he has his eye on an putting away $50 a month for a new mattress and expensive new model that would make a better box-spring set that costs $400. Then the set he impression on his customers (and also on his wants goes on sale, for a limited time only. The dates), he thinks. Car payments for the new model sale price is $300. Should Bill put the mattress and would be high, but Jake feels that he can make box-spring set on his credit card now, or should he enough in sales commissions to cover the cost. wait until he can save $400 to buy it? Should he take out a loan and buy the new car? 11. Felicia Washington is the homecoming queen 14. 11 What are the advantages and at her high school. She is going to the homecoming disadvantages of using credit? How can you decide dance with the best-looking guy in the senior to charge or not to charge? class. She goes shopping for a new dress to wear
