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2. They decide to shop for furnishings for the new house. They choose items that amount to $1,600.00. The store has 2 simple interest options
2. They decide to shop for furnishings for the new house. They choose items that amount to $1,600.00. The store has 2simple interest optionsfor purchasing:
Option 1: 20% down payment and financing at 6.4%simple interest per year for 2 years.
Option 2: no down payment and financing at 6.5%simple interestfor 3 years.
Answer each of the following questions separately, showing all your work to reach each answer.
- Which option will result in smallertotal finance charge?
- Which option will result in the smallermonthly payment?
- If they decide to defer any purchases and take a $1,600 bonus that Maria will be getting from work and invest it at 2.5% per yearsimple interest,how longwill it need to be invested to earn $250 interest
- If they decide to defer any purchases and invest the $1600.00 bonus at 1.5% interestcompounded every month, how much interest will they earn in 3 years?
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