When you go back to work as a financial analyst on Monday, you realize you may have made a mistake with that impulsive decision. You know that you can limit the damage done by paying off the TV sooner, so you are not charged interest for a full year. You decide that you are going to pay off the TV in six months.
If you pay off the TV in six months, how much interest will you be charged on the TV?
What was the return on your investment in Chris’ company?
Did that make your impulsive decision easier to swallow? What was the difference between paying cash for the TV and investing in Chris’ company, and buying the TV with the credit card, paying it off in six months, and investing the entire bonus in Chris’ company?
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