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.

1. Which option will result in smallertotal finance charge?
2. Which option will result in the smallermonthly payment?
3. 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
4. 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?