(question 14)

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 15% discount from the purchase price. a. Calculate the present value of the payments, if you can borrow or lend funds at a 7% interest rate. Assume the product sells for $100. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value b. Calculate the payment net of discount. Payment net of discount ta c. Which is a better deal? Pay the entire bill immediately Installment payment plan