15. Three consumers each purchase the same computer for $1,000. They each use the
same type of credit card, with all the same policies and conditions, to purchase the
computers. The credit card terms provide for an annual percentage rate (APR) of 18%.
Consumer 1 pays the minimum payment each month until, after two years, the balance
is paid off. Consumer 2 pays no money the first three months, but then pays the entire
amount off in the fourth month. Consumer 3 pays off the entire balance in the first
month.
Which statement best describes the results of the consumers' actions?
a. Consumer 1 will pay the least amount of money by only paying the minimum
payment each month.
b. Consumer 2 will pay the least amount of money by paying nothing during the first
three months but paying the balance in the fourth month.
c.
Consumer 3 will pay the least amount of money bicause there will be no interest
charges.
d. Consumers 1, 2, and 3 will each pay the same amount of money: $1,000.
