Question

I need all the work for this

(Credit and Debt Payoff HC)

A new homeowner is purchasing a living room set for $2,784 and must decide between two monthly installment financing offers.

Offer 1: $225 down payment, remaining balanced financed at a 24.90% interest rate for 3 years.

Offer 2: $450 down payment, remaining balanced financed at a 22.90% interest rate for 4 years.

Part A: What is the total cost of offer 1? Explain which technology you used to solve and each step of your process. (3 points)

Part B: What is the total cost of offer 2? Explain which technology you used to solve and each step of your process. (3 points)

Part C: Which financing offer should the new homeowner choose? Explain your reasoning. (4 points)

Answer 1

Part A:
AmountFinanced=PurchasePrice−DownPayment
Amount\Financed = $2,784 - $225
Amount\Financed = $2,559
TotalCost=AmountFinanced×(1+ n/r)^nt
Amount\,Financed = $2,559
r= 24.90% = 0.249
r= 24.90% = 0.249
r=12 (compounded monthly)
t=3 years
Total Cost = 2559 x (1 + 0.249/12)^12 x 3
TotalCost ≈ 2559×(1+0.02075)^36
TotalCost ≈ 2559×(1.02075)^36
TotalCost ≈ 2559×(1.9231)
Total Cost ≈ 4922.49
So, the total cost of offer 1 is approximately $4,922.49.
Part B:
AmountFinanced=PurchasePrice−DownPayment
Amount\Financed = $2,784 - $450
Amount\Financed = $2,334
TotalCost=AmountFinanced × (1+ n/r) ^nt
Amount\,Financed = $2,334
r = 22.90%=0.229
n = 12 (compounded monthly)
t = 4 years
TotalCost = 2334×(1+ 12/0.229)^12×4
TotalCost≈2334×(1+0.01908)^48
TotalCost≈2334×(1.01908)^48
TotalCost≈2334×(1.71708)
TotalCost≈4006.84
So, the total cost of offer 2 is approximately $4,006.84.
Part C:
Comparing the total costs:

Offer 1: $4,922.49
Offer 2: $4,006.84
The new homeowner should choose offer 2 because it has the lower total cost. Despite having a longer repayment period, the lower interest rate and larger down payment result in a lower overall cost compared to offer 1.

Answer 2

My brain hurts.

Answer 3

mine to trying to understand lmao

Answer 4

Don't just plug in the numbers smh, trust me

Answer 5

well i need to put this in my essay question.

Answer 6

as soon as I saw this, I got a headache






keep up the good work👍