Question

A store sells a Tv for $1000. Customers can choose to receive a 10% discount and pay off with loan at a simple interest rate of 4%, or they can choose to pay full price and pay it off in 3 years with no interest. if the customer plans to pay it off in 3 years, which option is better?

Answer 1

Answer:

1st option

Step-by-step explanation:

1st option (for 1 yr.)

Sum he have to pay after discount=$1000-($1000×10/100)=$1000-$100=$900

Amount he have to pay =$(900×4/100)+$900=$36+$900=$936

2nd option (for 1 yr.)

Amount he have to pay=1000/3=$333.33

$333.33 is less than $936.

So, in 1st option he have to pay less money.

So, 1st option is better.

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