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?
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.
The change in the temperature is proportional to the difference in temperatures. Let's call the initial temperature of the room and the thermometer and the current temperature where is the elapsed time in minutes. The outside temperature is 20 F.
