Question

Help fast plz

1…How are debit and credit cards similar? (Note: describe at least TWO similarities)

2…How are debit and credit cards different? (Note: describe at least TWO differences)

3…Suppose you need to take out a loan to buy a car. You will borrow $10,000 at a 4.5% interest rate for a 5-year loan (60 months). How much will be your monthly payment? Use this tool to find out:

Answer 1

Debit cards take out money out of your bank account immediately, whereas credit cards are like a short loan where you don't pay the money until the end of the month. Credit cards also allow you to take out money you don't have, which is good for emergencies.