Which is a better choice in buying a computer worth $12,700.00? Choose from the following options: 1. Borrow from a lending firm offering 12% compounded quarterly payable in 1 year and 6 months 2. Avail of the instalment plan which requires payment of $850.00 a month for 18 months 3. Borrow from a lending firm offering 12% compounded monthly payable in 1 year and 6 months 4. Borrow from a lending company that charges 12 1/4% simple interest payable in 1 year and 6 months
Which is a better choice in buying a computer worth $12,700.00? Choose from the following options: 1. Borrow from a lending firm offering 12% compounded quarterly payable in 1 year and 6 months 2. Avail of the instalment plan which requires payment of $850.00 a month for 18 months 3. Borrow from a lending firm offering 12% compounded monthly payable in 1 year and 6 months 4. Borrow from a lending company that charges 12 1/4% simple interest payable in 1 year and 6 months
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 15P
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Which is a better choice in buying a computer worth $12,700.00? Choose from the following options:
1. Borrow from a lending firm offering 12% compounded quarterly payable in 1 year and 6 months
2. Avail of the instalment plan which requires payment of $850.00 a month for 18 months
3. Borrow from a lending firm offering 12% compounded monthly payable in 1 year and 6 months
4. Borrow from a lending company that charges 12 1/4% simple interest payable in 1 year and 6 months
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