You are managing a small company and need to buy some equipment for your product line....

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You are managing a small company and need to buy some equipment for your product line. Kangaroo Manufacturing is offering free credit on a $20,000 piece of equipment. You pay down $2,000 and then $600 a month for the next 30 months. Turtle Machines does not offer free credit but will give you a $2,000 off the list price. If the rate of interest is 10% (APR) a year, which company is offering a better deal? You are managing a small company and need to buy some equipment for your product line. Kangaroo Manufacturing is offering free credit on a $20,000 piece of equipment. You pay down $2,000 and then $600 a month for the next 30 months. Turtle Machines does not offer free credit but will give you a $2,000 off the list price. If the rate of interest is 10% (APR) a year, which company is offering a better deal?

Answer rating: 100% (QA)

To determine which company is offering a better deal we need to compare the total cost of acquiring the equipment from each company Lets first calcula... View the full answer