Answer:
Janet Foster
a. Janet could save $12.44 on the printer by borrowing $800 to take advantage of the cash discount.
b. On the computer, the difference in the final payment between choices 1 and 2 is $197.
It is advisable for Janet to choose the first option.
Explanation:
a) Data and Calculations:
Printer:
List price of printer = $900
Trade discount =          100
Purchase cost =        $800
Cash discount terms = 2/10, n/30 
Cash discount = $16 ($800 * 2%)
Interest on loan to purchase printer = $3.56 ($800 * 8% * 20/360)
Savings if loan is borrowed = $12.44 ($16 - $3.56)
Computer:
List price = $4,060
Trade discount = 25% or $1,015 ($4,060 * 25%)
Purchase cost = $3,045
Payment options:
1) = $160 * 17 months = $2,720
 Balance on 18th month    325
Total payment =           $3,045
2) = Payment with 8% interest for 18 months equal payment = $180.08
From an online financial calculator:
N (# of periods)  18
I/Y (Interest per year)  8
PV (Present Value)   $3,045
FV (Future Value)  0
P/Y (# of periods per year)  12
C/Y (# of times interest compound per year)  12
PMT made at the end of each period
Results
PMT = $180.08
Sum of all periodic payments	$3,241.48
Total Interest	$196.48
Difference in final payment:
Choice 1 , total payment =    $3,045
Choice 2, total payment =    $3,242
Difference in final payment = $197