A store offers two payment plans. Under the installment plan, you pay 25% down and 25% of the purchase price in each of the next 3 years.. If you pay the entire bill immediately, you can take a discount of 11% from the purchase price. Assume the produce sells for $100

a. Calculate the present value of the payments if you can borrow or lend funds at an interest rate of 6%

Which is a better deal? Installment plan or pay in full

b. Calculate the present value if the payments on the 4 year installment plan do not start for a full year

which is a better deal? installment or pay in full