You are going to make a substantial purchase. You have enough money to pay cash, but don't know if that's the way to make best use of your assets.

Maybe you should take out an installment loan to make the purchase and invest the cash you would otherwise have used to pay for it$.$

Use the information provided to complete the following worksheet and analyze how the numbers work out most favorably for you. For simplicity,

compounding is ignored in calculating both the cost of interest and Interest earnings. $[$Note: Enter your dollar answers rounded to the nearest two

cents and precede numbers that are less than zero $(0)$ with a minus sign $(-).]$

Buy On Time or Pay Cash

Cost of Borrowing

Terms of the loan

a$.$ Amount of the loan

$$15,000$

b$.$ Length of the loan $($In years$)$

c$.$ Monthly payment

$$248\mathrm{.}55$

WILL RATE