Randall's refrigerator stopped working and he needs a new one right away. He found a highly rated refrigerator that will fit his needs for $1,800. He has $500 in savings and can afford up to $125 more per month in his budget. He is concerned about using up his savings and not having any emergency money. He is also worried about pushing his monthly budget to the limit. Randall's credit card has an APR of 18% and would require a minimum monthly payment of $40 for this purchase. Help Randall consider his options and make a smart decision. • Option 1: Don't use savings and pay the minimum $40 per month. • Option 2: Don't use savings and pay $125 per month. • Option 3: Use the $500 savings and pay the minimum $40 per month. Option 4: Use the $500 savings and pay $125 per month. Option 1 Option 2 Option 3 Option 4 Initial Balance $1,800 $1,800 $1,800 $500 = $1,300 $1,800-$500 = $1,300 $125 $40 $125 Monthly Payment $40 75 months = 18 months = 45 months = 12 months = Time to Pay Off : year(s) + year(s) : year(s) : year(s) $2,043 $2,296 $1,924 Total Paid $3,020 $ %$4 Interest Paid $

Randall's refrigerator stopped working and he needs a new one right away. He found a highly rated refrigerator that will fit his needs for $1,800. He has $500 in savings and can afford up to $125 more per month in his budget. He is concerned about using up his savings and not having any emergency money. He is also worried about pushing his monthly budget to the limit. Randall's credit card has an APR of 18% and would require a minimum monthly payment of $40 for this purchase. Help Randall consider his options and make a smart decision. • Option 1: Don't use savings and pay the minimum $40 per month. • Option 2: Don't use savings and pay $125 per month. • Option 3: Use the $500 savings and pay the minimum $40 per month. Option 4: Use the $500 savings and pay $125 per month. Option 1 Option 2 Option 3 Option 4 Initial Balance $1,800 $1,800 $1,800 $500 = $1,300 $1,800-$500 = $1,300 $125 $40 $125 Monthly Payment $40 75 months = 18 months = 45 months = 12 months = Time to Pay Off : year(s) + year(s) : year(s) : year(s) $2,043 $2,296 $1,924 Total Paid $3,020 $ %$4 Interest Paid $

Intermediate Algebra

19th Edition

ISBN:9780998625720

Author:Lynn Marecek

Publisher:Lynn Marecek

Chapter12: Sequences, Series And Binomial Theorem

Section12.3: Geometric Sequences And Series

Problem 12.58TI: What is the total effect on the economy of a government tax rebate of $500 to each household in...

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