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lana [24]
3 years ago
6

Paul is going to buy a collectible vintage painting from the local art gallery. The painting is priced at $600 in the gallery. T

he gallery owner does accept credit cards but pefers cash. In fact, he offers to give Paul a 5% discount if he can pay in cash. Paul doesn’t have any cash but can get a cash advance on his credit card. His credit card has and APR f 16% in credit purchases and a 32% APR on cash advances. Assuming Paul wants to pay the painting off over 12 months, which of the following is true?
Mathematics
2 answers:
Lubov Fominskaja [6]3 years ago
6 0

Answer:

Answer ended up being "B" just finished the test and this is one i got wrong, however it lets you see the correct answer, which again was option "B"

Step-by-step explanation:

i gotta write some words here my guy. good luck tho

Anuta_ua [19.1K]3 years ago
3 0
Given:Painting priced at $600.
If paid using credit card and in installment basis.$600 x 16% = $96 interest on credit card balance$600 + $96 = $696 total debt$696 ÷ 12 months = $58 monthly payments
If paid using cash from cash advance.$600 x 5% discount = $30$600 - $30 = $570$570 x 32% = $182.40 interest on cash advance$570 + $182.40 = $752.40$752.40 ÷ 12 months = $62.70 monthly payment
It is cheaper for Paul to buy the painting using his credit card. He will only pay $58 per month on his credit card provider compared to the $62.70 monthly bill if he used cash advance.

Hope this helped☺☺
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