They decide to shop for furnishings for the new house. They choose items that amount to
$1,600...
Mathematics, 08.03.2020 04:09 simegustachocolate
They decide to shop for furnishings for the new house. They choose items that amount to
$1,600.00. The store has 2 simple interest options for purchasing:
Option 1: 20% down payment and financing at 6.4% simple interest per year for 2 years.
Option 2: no down payment and financing at 6.5% simple interest for 3 years.
Answer each of the following questions separately, showing all your work to reach
each answer.
A. Which option will result in smaller total finance charge?
B. Which option will result in the smaller monthly payment?
C. If they decide to defer any purchases and take a $1,600 bonus that Maria will be getting
from work and invest it at 2.5% per year simple interest, how long will it need to be
invested to earn S250 interest
Answers: 1
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