When the weather is nice, Chase and his dad enjoy fishing together. Before their first fishing trip of the season, Chase bought a new pole that cost $29.99. He paid using his debit card. Which statement is true? Choices: (A)Chase will pay interest on his purchase. (B)Chase will not pay any interest on his purchase. (C)Chase will only pay interest on his purchase if he doesn't pay off his monthly balance.

Question

When the weather is nice, Chase and his dad enjoy fishing together. Before their first fishing trip of the season, Chase bought a new pole that cost $29.99. He paid using his debit card. Which statement is true?   Choices: (A)Chase will pay interest on his purchase. (B)Chase will not pay any interest on his purchase. (C)Chase will only pay interest on his purchase if he doesn't pay off his monthly balance.

Bytelearn · Accepted Answer

Identify Transaction Nature:  Identify the nature of the transaction: Chase used his debit card to pay for the fishing pole. Debit card transactions directly withdraw money from the bank account linked to the card. Analyze Debit Card Implications:  Analyze the implications of using a debit card: Since the money is taken directly from Chase's bank account, there is no borrowing involved. Therefore, no interest is charged on the transaction unless the account goes into overdraft, which is not indicated in the problem. Compare Given Choices:  Compare the choices given:  (A) Chase will pay interest on his purchase - This is incorrect because debit transactions do not involve borrowing money. (B) Chase will not pay any interest on his purchase - This is correct based on the nature of debit card transactions. (C) Chase will only pay interest on his purchase if he doesn't pay off his monthly balance - This applies to credit cards, not debit cards.

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