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Mathematics, 01.06.2021 04:50, HappyBeatrice1401
1. You are planning to buy a set of furniture for an apartment. A furniture store has the perfect set
for $2,800. They offer you a two-year installment agreement requiring you put $280 down and
pay monthly payments of $120.25.
a. What is the interest (finance charge) on this installment agreement?
b. Instead of using the store's installment plan, your credit union will loan you $2,800 at an
APR of 8.2% for two years. What would be the monthly payment for this loan?
C.
How much interest would the credit union charge (the total interest you will pay)?
d.
Should you use the installment plan or borrow the money from the credit union? Explain.
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Answers: 1
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