Comparing the Cost of Credit during Inflationary Periods. Dorothy lacks cash to pay for a $600 dishwasher. She could buy it from the store on credit by making 12 monthly payments of $52.74. The total cost would then be $632.88. Instead, Dorothy decides to deposit $50 a month in the bank until she has saved enough money to pay cash for the dishwasher. One year later, she has saved $642—$600 in deposits plus interest. When she goes back to the store, she finds the dishwasher now costs $660. Its price has gone up 10 percent. Was postponing her purchase a good trade-off for Dorothy? (Obj. 2)

No, it was not

Explanation:

In this question, we are asked to determine if Dorothy has made a good decision postponing her purchase by comparing the cost of credit during inflationary periods.

The correct answer to this is that , this is not a good trade-off. This is because after waiting 1 year, she had to pay more to buy the dishwasher. Although she had saved $642, the dishwasher price has increased from $600 to $660.

Looking at the scenario, if she had paid for the dishwasher using credit she would have paid a sum of only $632.88 according to the question.

What could however be the reason for her decision?

It may be possible that not incurring a debt and not being responsible for monthly payments were more important to Dorothy than the money she would have saved if she had used credit.

answer; i do believe that the correct answer is (6) points in georgia;

it's actually a very difficult task, due to not many people can make 2 million dollars in 2 years. besides that, to the not-so-realistic ideas, you can create a business. it could be practically anything, but make it into a business that isn't that known yet, you get me? also, lets not forget about stock market. that's where all the good stuff happens. use investments at the beginning and begin to raise up your business or whatever you're going to do. as this is a very non-realistic idea, it's still worth the shot!