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Archy [21]
3 years ago
7

You can buy a computer with your credit card and pay for it over the course of one year. With an interest rate of 16 percent, yo

u would need to pay $181.46 for 12 months to pay off the charge. You can rent the computer for 12 months for $200 per month and, at the end of the rent period, buy it for $300. How much will you save by purchasing the computer with your credit card instead of using the rent-to-own plan?
Business
1 answer:
iragen [17]3 years ago
6 0

Answer:

you can save $522.48 by purchasing the computer with the credit card

Explanation:

total money paid to the credit card company = $181.46 x 12 = $2,177.52

total money paid for renting the computer = $200 x 12 = $2,400, plus the final payment = $2,400 + $300 = $2,700

money saved by using the credit card = $2,700 - $2,177.52 = $522.48

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For the year endend December 2020  

 

 

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