mo has a credit card that gives a 3% discount on every purchase. the annual percentage rate on the card is…

mo has a credit card that gives a 3% discount on every purchase. the annual percentage rate on the card is 12%. he is purchasing an electronic reader for $140. check all that apply. if mo uses the credit card and pays the full balance during the billing cycle, the cost of the purchase will be $140. if mo pays cash, the cost of the purchase will be $140. if mo uses the credit card and pays off the balance at $30 a month for 7 months with no late fees, the cost of the purchase will be $143.34. if mo pays cash, the cost of the purchase will be $135.80. if mo uses the credit card and pays off the balance at $20 a month for 7 months with no late fees, the cost of the purchase will be $139.89. if mo uses the credit card and pays the full balance during the billing cycle, the cost of the purchase will be $135.80.

mo has a credit card that gives a 3% discount on every purchase. the annual percentage rate on the card is 12%. he is purchasing an electronic reader for $140. check all that apply. if mo uses the credit card and pays the full balance during the billing cycle, the cost of the purchase will be $140. if mo pays cash, the cost of the purchase will be $140. if mo uses the credit card and pays off the balance at $30 a month for 7 months with no late fees, the cost of the purchase will be $143.34. if mo pays cash, the cost of the purchase will be $135.80. if mo uses the credit card and pays off the balance at $20 a month for 7 months with no late fees, the cost of the purchase will be $139.89. if mo uses the credit card and pays the full balance during the billing cycle, the cost of the purchase will be $135.80.

Answer

Explanation:

Step1: Calculate cost with cash payment

Cash payment has no discount or interest. So cost is the original price of $140.

Step2: Calculate cost if pay - in - full with credit card

The credit card gives a 3% discount. So the cost is $140\times(1 - 0.03)=140\times0.97 = 135.80$.

Step3: Analyze paying off balance in installments

When paying off in installments, we need to consider the annual percentage rate (APR). But we can also note that the statements about paying off in installments ($30 a month for 7 months and $20 a month for 7 months) are incorrect as they are not calculated correctly considering the discount and interest rules. The correct way to calculate installment - based payments is more complex involving interest calculations on the remaining balance each month, but we can rule out these incorrect statements based on the basic understanding.

Answer:

If Mo pays cash, the cost of the purchase will be $140. If Mo uses the credit card and pays the full balance during the billing cycle, the cost of the purchase will be $135.80.