You've been considering purchasing a large-screen television for your home. During visits to your local electronics retailer, you've identified the one that you think is right for you. You are now thinking about a choice of payment methods that are available to you:

Method 1 The advertised price is $6,000, but there is a "Zero Percent Finance" offer that the shop has advertised, requiring you to pay a 10% deposit followed by 18 monthly payments each of $300.

Method 2 Although the advertised price of the TV is $6,000, the shop assistant has indicated he might be willing to "do a deal" for only $5,400 if you can pay cash.

Your bank has agreed to let you "top up" your mortgage to purchase this TV at the cash deal price (i.e., with a $5,400 loan) and is currently offering a loan with a fixed rate of 5% p.a. The loan is 3 repayable in 18 equal monthly installments.

Explain and demonstrate numerically which of the two alternative methods is more advantageous for you to use