rita has a debit card linked to a checking account with an available balance of $570. she also owes $790 on…

rita has a debit card linked to a checking account with an available balance of $570. she also owes $790 on her credit card, which has a credit limit of $1450. use this information to answer the questions below. (a) rita is going to purchase an item with her debit card. what is the most she can spend? (b) rita is going to purchase an item with her credit card. what is the most she can spend? (c) suppose an item costs $600. which card can be used for the entire purchase? select all that apply. if neither card can be used, check \neither\. debit card credit card neither

rita has a debit card linked to a checking account with an available balance of $570. she also owes $790 on her credit card, which has a credit limit of $1450. use this information to answer the questions below. (a) rita is going to purchase an item with her debit card. what is the most she can spend? (b) rita is going to purchase an item with her credit card. what is the most she can spend? (c) suppose an item costs $600. which card can be used for the entire purchase? select all that apply. if neither card can be used, check \neither\. debit card credit card neither

Answer

Explanation:

Step1: Determine debit - card spending limit

The available balance in the checking account linked to the debit card is the maximum amount that can be spent. So the maximum amount Rita can spend with her debit card is equal to the available balance. Available balance = $570

Step2: Determine credit - card spending limit

The credit - card spending limit is calculated by subtracting the amount she already owes from the credit limit. Credit limit = $1450, Amount owed = $790 Maximum spending with credit card=$1450 - 790$ $= 660$

Step3: Compare with the cost of the item

The item costs $600. The available balance on the debit card is $570<$600, so the debit card cannot be used for the entire purchase. The maximum spending limit on the credit card is $660>600, so the credit card can be used for the entire purchase.

Answer:

(a) $570 (b) $660 (c) Credit card