2. They decide to shop for furnishings for the new house.

2. They decide to shop for furnishings for the new house. They choose
items that amount to $3600.00. The store has 2 fixed installment loan options for purchasing:

Option 1: 20% down payment and financing at 6% simple interest per year for 3 years.

Option 2: no down payment and financing at 6.35% simple interest for 4 years.

Answer each of the following questions separately, showing all your work to reach each answer.

-Which option will result in smaller total finance charge? What will that total finance charge be?
-Which option will result in the smaller monthly payment? What will that monthly payment be?
-They decide to defer any purchases and invest a $3600 bonus that Maria will be getting from work in a savings account. The interest rate is 1.6% compounded every month. How much interest will they earn in 3 years?
-They decide to defer any purchases and loan the $3600 bonus to a needy relative at 2.5% simple interest per year. How long will the term of the loan need to be if they want to earn $400 in interest (assuming the loan is not paid off early).

Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"