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when buying a home theatre sustem for your local electronics store, you are offered one of two choices: pay $1,400 for the system outright, or

when buying a home theatre sustem for your local electronics store, you are offered one of two choices: pay $1,400 for the system outright, or oay $200 as an initial deposit and take a loan to pay off the redt over the jext year. the remainer of the ampunt may be paid off in monthlu insallments of $120. the lrevailing nominal interesr rate is 6%. how much would uou be laying for teh home thestre ststem if you chose the buy-on-credit option?

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