In 2014 to purchase an iPhone 5s with 16GB memory without locking in any phone plan you have two options: 1) Buy at Walmart with a discounted price of $549. 2) Buy at T-Mobile with a 2-year 0% APR finance with a monthly payment of $26. In this case, the ticketed price would show $624=$26×24. By now, you should know that 0% APR is a sham. Suppose that Jack didn’t have money to pay for a phone then. He had a credit card with a 18% APR. Should Jack use his credit card to buy the phone from Walmart or from T-Mobile using its 0% APR financing? Support your answer with calculations.

Answer rating: 100% (QA)

To determine whether Jack should use his credit card to buy the phone from Walmart or from TMobile u... View the full answer