Question: please answer all questions! Antonio would like to replace his golf clubs with a custom-measured set. A local sporting goods megastore is advertising custom clubs
Antonio would like to replace his golf clubs with a custom-measured set. A local sporting goods megastore is advertising custom clubs for $840, including a new bag. In-store financing 3.39 percent, or he can choose not to renew his $600 cortificate of deposit (CD), which just matured. The advertised CD renewal rate is 4.44 percont. Antonio knows the in-storo financ would not affect his taxes, but he knows heil pay taxes (25 percent federal and 5.75 percent state) on the CD interest eamings. Should he cash in the CD or use the in-store financing? The aner-tax CD earnings rate is \%. (Round to two decimal places.)
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