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Can you check the answers I have and answer the blank. A store offers two payment plans. Under the installment plan, you pay 25% down
Can you check the answers I have and answer the blank.
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 10% discount from the purchase price. Assume the product sells for $100. a-1. Calculate the present value of the payments if you can borrow or lend funds at an interest rate of 5 percent. (Do not round intermediate calculations. Round your answer to 2 decimal places.) a-2 Which is a better deal? b-1. Calculate the present value if the payments on the 4-year installment plan do not start for a full year. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b-2. Which is a better deal? $ 27.23 Pay in full a-1. PV of installment plan a-2. Which is a better deal? b-1. PV of installment plan b-2. Which is a better deal? Installment plan
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