Question

Which of the following options is a better purchase for a bicycle? Option 1: A cash sale for $88

Option 2: $5 down with equal payments of $8 for 10 weeks
Option 3: $12 down with equal payments of $5 for 12 months
Option 4: $20 down with equal payments of $20 for 12 months

(A.) Option 3
B. Option 1
C. Option 2
D. Option 4

Answer 1

The answer is option 3

Step-by-step explanation:

Answer 2

Option 3

Step-by-step explanation:

To get the value of the cheapest bike, best option, we will calculate the total cost of each bike:

i- Option 1:

Total cost = $88

ii- Option 2:

$5 down payment and $8 per week for 10 weeks

Total cost = 5 + 8(10) = 5 + 80 = $85

iii- Option 3:

$12 down payment and $5 per month for 12 months

Total cost = 12 + 5(12) = 12 + 60 = $72

iv- Option 4:

$20 down payment and $20 per month for 12 months

Total cost = 20 + 20(12) = 20 + 240 = $260

Now, from the above calculations, we can conclude that:

The best price would be that of option 3 ($72). It is the lowest price compared to other option.

Hope this helps :)