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A new homeowner is purchasing a living room set for $2,590 and must decide between two monthly installment financing offers.

Offer 1: $200 down payment, remaining balanced financed at a 24.90% interest rate for 3 years.

Offer 2: $425 down payment, remaining balanced financed at a 22.90% interest rate for 4 years.

Part A: What is the total cost of offer 1? Explain which technology you used to solve and each step of your process.

Part B: What is the total cost of offer 2? Explain which technology you used to solve and each step of your process.

Part C: Which financing offer should the new homeowner choose? Explain your reasoning.



Sagot :

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