The question in the lesson was "Do you have a toaster?" (it did not specify formal or informal 'you'). My answer was Tiene usted and was marked wrong. I think it's correct
Yes, we do have another pronoun for a "you formal" (instead of tú, informal). So, you can use "usted" when speaking in a more formal situation or to an elderly person for example as a form of politeness. If you use usted, then the verb needs to be conjugated the same was as he/she. For example:
Tú eres muy inteligente.
You are very intelligent. (talking to a friend, someone you know well)
Usted es muy inteligente.
You are very intelligent. (talking to a boss or an elderly person for example)
We have a lesson about Tú vs Usted. Have a look.
Yes, your answer with "Tiene usted" should also be correct. That's been added to the possible correct answers.
Gracias y saludos,
I was taught I tengo you tienes he she tiene but your system says tiene is for formal you I don't understand
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