Mathematics, 28.05.2021 21:10 ebonsell4910
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: 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 in 12 months to avoid
additional penalties
Option II: The appliance store offers an installment loan for his purchase:
Loan charges a simple interest rate of 12,5%
2) Loan must be paid off in 12 equal payments to avoid penalties
A $300 down payment is required
A Which Option should Jaime choose if he wants the interest he pays to be as
small as possible?
Answers: 1
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Jaime needs to buy a new refrigerator for his apartment. He found what he needed for
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