The cost of getting it now · Alberta Grade 6 · maddyhelps.com
A bike costs $240. Work out each plan, then decide which you would choose and why.
| Plan | Bike when? | Total paid | Extra cost |
|---|---|---|---|
| A. Save $20 a week, then buy it | |||
| B. Borrow now, pay $25 a week for 12 weeks | |||
| C. Buy now, pay later: 4 payments of $60, $15 fee for each late one — and 2 are late |
One benefit of borrowing
One risk of borrowing
Which plan would you choose, and why?
Borrowing money
A: after 12 weeks, $240 total, $0 extra. B: now, $300 total, $60 extra — 25% more. C: now, $270 total, $30 extra in late fees (and $0 if every payment is on time). Benefit: you have it now, which matters for something you need. Risk: it costs more, and if the money stops coming in the debt doesn't stop.
Plan C is the one to talk about. Buy-now-pay-later plans cost nothing when everything goes right, and are built to earn money when it doesn't.
Why this matters is on the moving and feeling good page. More sheets