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When Mark moved to Chicago, he went to Mattress Firm to purchase a queen-size Tempur-Pedic mattress. The store offered him a financing plan, in which
When Mark moved to Chicago, he went to Mattress Firm to purchase a queen-size Tempur-Pedic mattress. The store offered him a financing plan, in which he would make a $1,000 payment per year for three years, starting 12 months from the date of the purchase. He could also buy the mattress paying $2,600 in full at the time of the purchase. Mark had no money at that moment, but a credit card with an 18% annual interest rate. Should Mark go with the payment plan in the store or charge the full cost on his credit card? Support your recommendation to Mark with calculations
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