CHECK Your Understanding 1. Rilla bought a new chair for $526.83. She paid for the chair with her credit card at 19.7%, compounded daily. a) If Rilla repays the loan in 1 year, how much will her payments be? b) When Rilla checked her mail, she had an offer for a new bank credit card with a $100 rebate and an interest rate of 16.7%, compounded daily. i) If she had used the new credit card instead, what would her payments have been? ii) How much would she have saved with the new credit card? 2. Sandy is buying a new car for S36 425, including a shipping charge of $1300. She is considering the following two credit options: Financing through the dealership at 4.3%, compounded monthly, for a term of 4 years, with the incentive that the dealership will pay the $1300 shipping charge A bank loan at 4%, compounded monthly, for a term of 5 years a) What are the monthly payments for each option? b) What is the total payment for each option? c) What are the advantages and disadvantages of cach option? 3. Bruce is planning to buy and install new tires and rims on his car. The cost is $1150, which he will use credit to pay. He wants to pay off the loan in 6 months and has two credit options: The tire shop has financing at 16.8%, compounded monthly, and is offering a $100 immediate rebate. Bruce's existing credit card has a zero balance and a rate of 14.6%, compounded daily. a) Which option will require lower payments: b) Which option will charge less interest? c) Which option will cost him less overall