prob 12. what is a benefit of paying for a large purchase with cash? prob 13. what disadvantage does…

prob 12. what is a benefit of paying for a large purchase with cash? prob 13. what disadvantage does financing a purchase have over paying with cash? prob 14. how does buying an item on credit compare to paying cash in terms of credit history?

prob 12. what is a benefit of paying for a large purchase with cash? prob 13. what disadvantage does financing a purchase have over paying with cash? prob 14. how does buying an item on credit compare to paying cash in terms of credit history?

Answer

Brief Explanations:

  • Prob 12: Paying cash avoids interest charges. There's no debt - related stress and it may lead to better deals as some sellers offer cash discounts.
  • Prob 13: Financing often incurs interest costs over time, increasing the overall cost of the purchase compared to paying cash upfront.
  • Prob 14: Buying on credit can impact credit history. Timely payments can improve it, while late or missed payments can damage it. Paying cash has no direct impact on credit history.

Answer:

  • Prob 12: Avoids interest charges, may get discounts, no debt - related stress.
  • Prob 13: Incurs interest costs, increasing overall purchase cost.
  • Prob 14: Buying on credit can impact credit history (positively or negatively depending on payment behavior), paying cash has no direct impact.