You wish to purchase a certain car. Two dealerships in town are selling

the car for $20,000. Both dealerships are unique in unusual finance offers. Rather than monthly payments, you are charged interest over time, yet you are expected to pay the car off (plus interest) in one lump sum payment at a date of your choosing. The dealerships don't want to deal with paperwork and are really only interested in "loaning" you money with interest. However, each offers a different payment plan. You have discretion of when you want to pay off this car.

Plan A- No down payment needed or payments in the first year. When you do pay for the car, you will make one full payment for the car plus any interest accrued. This plan comes with a 12% interest/per year change.

Plan B- No down payment needed. No fees or penalties for not making payments. Again, you will make one full payment for the car plus any interest accrued. The plan charges 1% interest per month.

Which plan is better for your needs? Please include details about how much you will have to pay off at different times and how you arrived at the decisions you made.

When is option A the best choice?

When is option B the best choice?

In payment plan B, we say the interest is being compounded monthly, eventually how much is payment plan b charging per year?