Question
They decide to shop for the new house. They choose items that amount to $ 1800.00. The store has 2 options for purchasing: I. financing
They decide to shop for the new house. They choose items that amount to $ 1800.00. The store has 2 options for purchasing:
I. financing at 6% simple interest per year for 2 years with a 10% down payment.
II. no down payment and financing at 5.2% simple interest for 3 years.
Answer each of the following questions separately, showing all your work to reach each answer.
a. Which option should they choose if they want the smallest finance charge?
b. Which option should they choose if they want the smallest total installment price?
c. Which option should they choose if they want the smallest amount of the monthly payment?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started