Business, 02.08.2021 21:50 mprjug6

Paul is going to buy a collectible vintage painting from a local art gallery. The painting is priced at $600 in the gallery. The gallery owner does accept credit cards but prefers cash. In fact, he offers to give paul a 5% discount if he can pay in cash. Paul doesn't have any cash but can get a cash advance on his credit card. His credit card has an apr of 16% on credit purchases and a 32% apr on cash advances. Assuming paul wants to pay the painting off over 12 months, which of the following is true? a. Paul will pay a total of $696, over 12 months, if he purchases the painting with his credit card.
b. Paul will pay a total of $653.28, over 12 months, if he purchases the painting with his credit card.
c. Paul will pay a total of $782.40, over 12 months, if he purchases the painting with a cash advance for discounted purchase price.
d. Paul will pay a total of $708.96, over 12 months, if he purchases the painting with a cash advance for discounted purchase price.

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