Terry is interested in buying a
new cell phone, costing $200.
However, he has only $50 in
his checking account and $40
in savings. He is considering
how to borrow the rest he
needs to cover the cost. In
a short paragraph, explain
which of these three kinds
of credit would work best
for Terry: a retail card, an
installment loan, or a layaway
plan. From what you know
already, how would you
purchase this new cell phone?