Washing machine cost $600. You can buy on credit for 12 monthly payments of $52.74 each total cost $632.88 or you can save $50 a month and a year later you have $642 ($600 in deposits plus interest) Now the washing machine is $660. Price went up 10% the current inflation. Is saving the $50 deposits the best trade off?

Washing machine cost $600. You can buy on credit for 12 monthly payments of $52.74 each total cost $632.88 or you can save $50 a month and a year later you have $642 ($600 in deposits plus interest) Now the washing machine is $660. Price went up 10% the current inflation. Is saving the $50 deposits the best trade off?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section: Chapter Questions

Problem 7P

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