1.

A firm sells the same material on two separate payment plans. According to the 1st payment plan, the payment period is 12 months and the monthly installments are 10 837 000 TL each and an interim payment of 12 million TL is required at the end of the 6th month. In the second payment plan, the payment period is 18 months and the monthly installments are 7 965 000 TL each, and an interim payment of 36 million TL is required at the end of the 12th month. For both options, the annual nominal interest rate is 60%. Which payment plan would you recommend? Intermittent compound interest is applied on payments.