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29 September, 05:56

A store sells a television for $1000. Customers can choose to receive a 10% discount and pay it off with a loan at a simple interest rate of 4%, or they can choose to pay full price and pay it off in 3 years with no interest. If the customer pans to pay it off in 3 years, which option is better?

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  1. 29 September, 06:05
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    I=PRT

    P=principal

    r=rate in decimal

    t=time in years

    first one

    10% off is 100 less or 900

    I=900*0.04*3

    I=108

    900+108=1008

    2nd one

    full price is 1000

    1008>1000

    cheaper to just pay it whtout interest
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