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decides that he also needs a new car and goes out and purchases a
Hummer with a 6-year loan on it. Which reason for indebtedness is
this an example of?
Misunderstanding or lack of communication
Keeping up with the Joneses
The expectation of instant comfort
The use of money to punish
Overindulgence of children
Question 19. 19. (TCO 3) In terms of borrowing expenses, which of
the following options would be relatively the cheapest?
Car dealer
Appliance store
Department store
Relative
Finance company
Question 20. 20. (TCO 3) If Marjorie Wilcox borrows $200 for 1 year
with an APR of 12% and an annual service fee of $10, what is her
total cost of credit?
$10
$12
$24
$34