Answer to Question #61175 in Financial Math for kiara

Question #61175

Clarissa wants to buy a $5995 home entertainment system from the Legends Super Store.
Her purchasing options are as follows:

Option 1
Legends Super Store
Finance Company
• ½ deposit
• 6 months interest free and no repayments for 6 months
THEN pay the FULL balance due.

option 2
• $1250 deposit
• 24 equal monthly repayments of $265 each month.

option 3
• ⅓ deposit
• 18 equal monthly repayments of $390

a) Compare each of the loans in terms of the total monthly repayments, the interest paid and the total amount to be repaid.

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