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Shayla's fridge died and she needs to buy a replacement right away. Her payment options are 1) Nothing down and then 12 monthly payments of
Shayla's fridge died and she needs to buy a replacement right away. Her payment options are 1) Nothing down and then 12 monthly payments of $100 (at the end of every month) for 1 year. 2) $145 down, no payments for the first year and then 12 monthly payments of $103.001 (round this number off to 2 decimals) at the beginning of each month starting exactly one year from today. 3) $1084.08 in cash. The nominal interest rate is 12% compounded monthly. a) If Shayla wants the cheapest price she should choose option (Answer is just 1,2 or 3) b) If Shayla wants the plan with the lowest monthly payment amount she should choose option c) If Shayla has only $100, is unemployed but expects to find work in the next 6 months, she should choose option d) What is the present value of option 2? (Click to select) (Pick the closest answer, ignore all the stupid extra decimal places.)
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