Answer:
Question 1
$200
Question 2
Plan A; The amount payed back per week = $5
Plan B; The amount payed back per week = $4
Question 3
Plan B
Step-by-step explanation:
Question 1
The amount borrowed from the brother = $200
Question 2
The two plans payment terms created by the brother are;
Plan A,
Amount payed per 2 month = $40/(2 months)
Therefore;
The amount payed per week = $40/(2 months)/((8 weeks)/(2 months)) = $5/week
The amount payed per week for plan A = $5 per week
Plan B
The number of weeks the $200 is payed back = 50 weeks
∴ The amount payed per week = $200/(50 week) = $4/week
Question 3:
The plan to be chosen is Plan B
This is so as to afford enough time to pay back and to have a smaller amount of repayment each week which will reduce the likelihood of defaulting in repayment.
