Question

Store A offers an item you want for $750 with a yearly maintenance plan that will cost you $50 each year over the next five years. Store B offers the same item for $760 with a one time payment of $225 for a maintenance plan that is good for five years. If you take the best deal, how much will you pay?

Answer 1

$985

Step-by-step explanation:

The total amount to be spent of store A

cost of the item: $750

yearly maintenance : 50 x 5 = $250

Total : $750 + $250

= $1000

For Store B

Cost of the item: $760

Maintenance plan: $225

Total: $ 760 + $225

=$985