Assignment $1\mathrm{.}3$: Credit Payment Calculations $($continued$)$

Cassandra Donaldson Steinway purchases a sound system from Company C$.$ She

can either pay for the sound system at the time of purchase or purchase it on the

company's buy$-$now, pay$-$later plan.

If she chooses to pay for the sound system at the time of purchase, the price is $$795$

$($plus taxes$).$ The delivery charge for the sound system is $$25.$

If she chooses the buy$-$now, pay$-$later option, the price of the sound system is $$869\mathrm{.}55$

$($plus taxes$).$ At the time of purchase, she must pay the taxes, delivery charge, and

a $$49\mathrm{.}99$ administration fee. She has $18$ months to pay for her purchase. If she pays

during this time period, she will not be charged interest.

a$)$ If Cassandra pays for the sound system at the time of purchase, calculate her

total pay$-$now price. $(3$ marks$)$

b$)$ If Cassandra chooses to purchase the sound system using the company's buy$-$

now, pay$-$later option, how much will she pay at the time of purchase? $(3$ marks$)$

c$)$ Cassandra purchases the sound system in October and pays for it the following

June. How much will she pay in total for the sound system? $(1$ mark$)$

d$)$ Calculate the difference between the total pay$-$now price and the total pay$-$later

price. $(1$ mark$)$

e$)$ Express the difference in the two prices, compared to the total pay$-$now price, as

a rate of percent. $(1$ mark$)$