A store sells a television for $1000. Customers can choose to receive a 10% discount and pay it off with a 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 pans to pay it off in 3 years, which option is better?

Question

Mathematics

Glenn Mccullough

1 October, 08:32

A store sells a television for $1000. Customers can choose to receive a 10% discount and pay it off with a 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 pans to pay it off in 3 years, which option is better?

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Answers (1)

Know the Answer?

Kelvin Blankenship · Answer 1

I=PRT

P=principal

r=rate in decimal

t=time in years

first one

10% off is 100 less or 900

I=900*0.04*3

I=108

900+108=1008

2nd one

full price is 1000

1008>1000

cheaper to just pay it whtout interest