Zippy Furniture Sales: 14 months with no payments or interest. If the full amount is not paid by the end of that time, interest must be paid from the date of purchase at 24% annual rate. Zappy Home Interiors: All merchandise in sale for 20% off, cash must be paid at the time of purchase.

Suppose you were choosing between the two alternatives, and you would not have needed the cash for 18 months. However, you can get a bank line of credit any time at a 10% annual rate. What actions would you take? Why?