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Hi

See the attached

Hi See the attached
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 $685?   1.$ .____  A payday loan company charges 5 percent interest for a two-week period. What would be the annual interest rate from that company? 2. ____% 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

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