+27 A customer has two payment options at a local furniture store when purchasing appliances worth $6000
Option 1
• Down payment of 15%.
• If paid off within 12 months, no interest charged.
• If paid off after 12 months, simple interest is charged at 18% per year from the date of purchase.
How much would the customer pay using this option if he made one payment for the entire balance after 12 months?
Option 2
• 5% down payment
• Monthly payments of $275 for 2 years.
How much would the customer pay if they chose this option?
