Question

Naomi buys a new computer for $840. She is considering two payment plans that require weekly payments. Which plan will play for the computer faster? Plan A $180 down $60/wk payments plan B $0 down $70/wk payments

Answer 1

The plan that will play the computer faster is Plan A $180 down $60/wk payments

Explanation:

Hi

Plan A.

As the computer has a value of $840 and Naomi pays $180 initially, she has a balance of $660, so
`(\$ 660)/(\$60/wk)=11weeks`.

Plan b.

As the computer has a value of $840 and Naomi pays $0 initially, she has a balance of $840, so
`(\$ 840)/(\$70/wk)=12weeks`.

Hence, Plan B delays 1 week more than Plan A, so if Naomi chooses plan A will pay the computer Faster.