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Mathematics, 16.10.2020 20:01 ADKREBS
Question 1
Jaime needs to buy a new refrigerator for his apartment. He found what he needed for $1,300 at a well-known appliance store. The store is offering two options for Jaime to finance the appliance:
Option I: A store credit card with a $1,500 limit:
1) The credit card charges 16.5% annual interest rate.
2) The minimum monthly payment is $100 plus the monthly finance charge.
3) No down payment required
4) The loan is expected to be paid off in12 months to avoid additional penalties.
Option II: The appliance store offers an installment loan for his purchase:
1) Loan charges a simple interest rate of 12.5%.
2) Loan must be paid off in 12 equal payments to avoid penalties.
3) A $300 down payment is required.
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