QUESTION 13:
You have $240 on hand. The credit manager is willing to extend you up to $30,000 of credit. Can you buy the $25,000 Miata?
You have $34,951 in small bills. Can you buy a $25,000 Miata?
Yes. You have enough money for the car. (We won't ask where you got that money.)
Recall the problem:
You would like to buy a new $25,000 red Miata sports car. To buy the car, you could pay cash for it, or you could buy it on credit.
Sometimes individuals have less than $25,000 on hand. No problem — they can buy on credit, if they qualify.
You have $240 on hand. The credit manager is willing to extend you up to $30,000 of credit. Can you buy the $25,000 Miata?