Question

Parker has saved $1,200 for him and his

wife to go to an all-inclusive island resort.
He decides to take out a $1,000 simple
annual interest loan at 4.5% for 1 year
and stay in a suite. Is Parker being
financially responsible or financially
irresponsible? What is the monetary value
of his benefit or cost?

Answer 1

I mean I think he is because the interest is less now, I still think it's irresponsible to take from his savings but ¯\_(ツ)_/¯