Question

A store sells a television for $1000. Customers can choose to receive a 10% discount and pay it off with a loan at a simple interest rate of 4%, or they can choose to pay full price and pay it off in 3 years with no interest. If the customer pans to pay it off in 3 years, which option is better?

Answer 1

Pay without the interest

Explanation:

Answer 2

I=PRT
P=principal
r=rate in decimal
t=time in years

first one
10% off is 100 less or 900
I=900*0.04*3
I=108
900+108=1008

2nd one
full price is 1000


1008>1000
cheaper to just pay it whtout interest