Janet Foster bought a computer and printer at Computer land. The printer had a $800 list price with a $100 trade discount and 2/10, n/30 terms. The computer had a $3,460 list price with a 25% trade discount but no cash discount. On the computer, Computer land offered Janet the choice of (1) paying $135 per month for 17 months with the 18th payment paying the remainder of the balance or (2) paying 10% interest for 18 months in equal payments.
a. Assume Janet could borrow the money for the printer at 10% to take advantage of the cash discount. How much would Janet save? 
b. On the computer, what is the difference in the final payment between choices 1 and 2? 

Answer rating: 100% (QA)

a Sale price of Printer List price Trade discount 800 100 700 Cash discount 700 2 14 This ... View the full answer