Öption 1: 20% down payment and fihancing at 7% SImple per Option 2: no down payment and financing at 7.75% simple interest for 3 years. Answer each of the following questions separately, showing all your work to reach each answer. A. Which option will result in smaller total finance charge? What will that total finance charge be? B. Which option will result in the smaller monthly payment? What will that monthly payment be? C. They decide to defer any purchases and invest in a savings account a $2400 bonus that Maria will be getting from work. The rate is 1.5% interest compounded every month. How much interest will they earn in 3 years? D. They decide to defer any purchases and loan the $2400 bonus to a needy relative at 3% simple interest per year. How long will the term of the loan need to be if they want to earn $300 in interest (assuming the loan is not paid off early).

Question
Öption 1: 20% down payment and fihancing at 7% SImple
per
Option 2: no down payment and financing at 7.75% simple interest for 3 years.
Answer each of the following questions separately, showing all your work to reach
each answer.
A. Which option will result in smaller total finance charge? What will that total
finance charge be?
B. Which option will result in the smaller monthly payment? What will that monthly
payment be?
C. They decide to defer any purchases and invest in a savings account a $2400 bonus
that Maria will be getting from work. The rate is 1.5% interest compounded every
month. How much interest will they earn in 3 years?
D. They decide to defer any purchases and loan the $2400 bonus to a needy relative at
3% simple interest per year. How long will the term of the loan need to be if they
want to earn $300 in interest (assuming the loan is not paid off early).
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Transcribed Image Text

Öption 1: 20% down payment and fihancing at 7% SImple per Option 2: no down payment and financing at 7.75% simple interest for 3 years. Answer each of the following questions separately, showing all your work to reach each answer. A. Which option will result in smaller total finance charge? What will that total finance charge be? B. Which option will result in the smaller monthly payment? What will that monthly payment be? C. They decide to defer any purchases and invest in a savings account a $2400 bonus that Maria will be getting from work. The rate is 1.5% interest compounded every month. How much interest will they earn in 3 years? D. They decide to defer any purchases and loan the $2400 bonus to a needy relative at 3% simple interest per year. How long will the term of the loan need to be if they want to earn $300 in interest (assuming the loan is not paid off early).