Question: A. A store offers two payment plans. Under the installment plan, you pay 20% down and 20% of the purchase price in each of the

A. A store offers two payment plans. Under the installment plan, you pay 20% down and 20% of the purchase price in each of the next 5 years. If you pay the entire bill immediately, you can take a 5% discount from the purchase price. B. Calculate the present value of the payments, if the payments on the 5-year installment plan do not start for a full year and you can borrow or lend funds at a 8% interest rate. Assume the product sells for $100. C. Calculate the payment net of discount. D. Which is a better deal? Pay the entire bill immediately Installment plan

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