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?

qtiop Jul 27, 2022