Question

A television for 675 cash or 52 down and 120 per month for 6 months

Answer 1

Option 1: $675

Option 2: 52 + 6x120 = $772

Since 675 < 772

Therefore the option to pay 675 cash is better.

Answer 2

675 cash

Explanation:

The option to be accepted by the buyer would be the lower of the two options available for payment. Considering option 2, the total amount if the option is accepted will be

= $52 + 6(120)

= $772

Option 2 will result in a total payment of $772. This is higher than option one which involves an outright payment of $675