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You've been considering purchasing a large-screen television for your home. During visits to your local electronics retailer you've identified the one that you think is right for you. You are now thinking about a choice of payment methods that are available to you: Method 1 The advertised price is $6,000 but there is a Zero Percent Finance offer that the shop has advertised, requiring you to pay a 10% deposit followed by 18 monthly payments each of $300. Method 2 Although the advertised price of the TV is $6,000, the shop assistant has indicated he might be willing to "do a deal" for only $5,400 if you can pay cash. Your bank has agreed to let you "top up" your mortgage to purchase this TV and is currently offering a loan with a fixed rate of 5% p.a. The loan is repayable in 18 equal monthly instalments. Explain and demonstrate numerically which of the two alternative methods is most advantageous for you to use