Question: Nicholas can purchase the same furniture from Store A for $2495 cash or from Store B for $2560 with nothing down and no payments or

Nicholas can purchase the same furniture from Store A for $2495 cash or from Store B for $2560 with nothing down and no payments or interest for 8 months. Which option should Nicholas choose if he can pay for the furniture by cashing in Canada Savings Bonds currently earning 3.9% per annum?

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We can view the extra 2560 2495 65 cost at Store B as an interest charge for a 2495 ... View full answer

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