What other factors would affect the decision.
John Walters is comparing the cost of credit to the cash price of an item. If John makes an $80 down payment and pays $35 a month for 24 months, how much more will that amount be than the cash price of $685?
A payday loan company charges 5 percent interest for a two-week period. What would be the annual interest rate from that company?
What is the interest cost and the total amount due on a six-month loan of $1,500 at 13.2 percent simple annual interest? Use simple interest formula: I = P x r x T
3. Interest $_____
4. Amount Due After 6 months: $____
Brooke lacks cash to pay for a $600 washing machine. She could buy it from the store on credit by making 12 monthly payments of $52.74 each. The total cost would then be $632.88. Instead, Brooke decides to deposit $50 a month in the bank until she has saved enough money to pay cash for the machine. One year later she had saved $642—-in deposits plus $42 in interest. When she goes back to the store, she finds that the washing machine now costs $660. Its price has gone up 10%. Was postponing her purchase a good trade-off for Brooke? What other factors could be in play in this situation?
5. Good Decision; Yes or No and why
6. What other factors would affect the decision. List 2