Question: A store offers two payment plans. Under the installment plan, you pay 25% down and 25% of the purchase price in each of the next

  1. A store offers two payment plans. Under the installment plan, you pay 25% down and 25% of the purchase price in each of the next 3 years. If you pay the entire bill immediately, you can take a 10% discount from the purchase price (5 points).
    1. If you can borrow or lend at 6% interest rate which is the better deal?
    2. Ifthepaymentsonthe4-yearinstallmentplandonotstartforafullyear,whichplanisbetter?
    3. Especially for the second question!!! how to calculate if it not starts for a full year

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