Question
Gerry is buying a motorhome. He has the following options: Option 1: Purchasing the motorhome for $62,880 from Honest Susie. Under this deal he would
Gerry is buying a motorhome. He has the following options: Option 1: Purchasing the motorhome for $62,880 from Honest Susie. Under this deal he would pay 10% down and making 60 equal monthly which would include interest at 6%. Not being complete sure of the trustworthiness of Susie, he called the bank and, indeed, 6% was the going rate on such purchases. Option 2: Dealing Dave has offered the bus of $75,000. Under this deal, he would pay no money down and annual interest payments of 2%. Then at the end of the fifth year, he would pay the $75,000. Option 3: Mostly Honest Bill would sell him the bus to $72,000. Under this deal he would put no money down and pay the 72,000 in 48 equal monthly payments that include interest at 3% Rank the deals in order of which is best for John A. 1, 2, 3. B. none of the listed choices C. 3, 1, 2. D. 3, 2, 1. E. 2, 1, 3.
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