They decide to shop for furnishings for the new house. They choose items that amount to $2400.00. The store has 2 fixed installment loan options for purchasing: Option 1: 20% down payment and financing at 7% simple interest per year for 2 years. 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. Which option will result in smaller total finance charge? What will that total finance charge be? Which option will result in the smaller monthly payment? What will that monthly payment be?
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
- They decide to shop for furnishings for the new house. They choose items that amount to $2400.00.
The store has 2 fixed installment loan options for purchasing:
Option 1: 20% down payment and financing at 7% simple interest per year for 2 years.
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.
- Which option will result in smaller total finance charge? What will that total finance charge be?
- Which option will result in the smaller monthly payment? What will that monthly payment be?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
