You just bought a fixer upper home and you need to buy new appliances. You go to The Home Depot and a GE refrigerator, stove, microwave, and dishwasher package is $7,500. They tell you that you can qualify for immediate credit and finance the purchase. The interest rate is 28%. You decide you will pay this off in five years.

What is your monthly payment? (A)

How much interest did you pay over the five-year loan? (B)

28% is a ridiculous amount of interest. If you can qualify for a personal loan at a local credit union or bank at 11% interest, what is your payment over five years? (C)

How much interest did you pay over those five years? (D)

Better yet, save up three years for the appliances and pay cash. If you need $7,500 in three years and you can earn 4.5% in your money market savings fund, how much do you need to save per month? (E) .