Question

14) Acacia is trying to decide whether to purchase a new sofa and armchair using an installment credit offer from the store or to wait until she has enough cash saved to buy the living room furniture without relying on credit. The total cost of the furniture is $2,700. The installment credit offer requires that Acacia pay 17% per year for the loan. She may pay interest only for the first year of the loan. Assuming that Acacia would pay only the interest for the first year and then pay off the principal, how much more would she end up paying for the furniture than if she waits until she has enough saved up to pay for it in cash? *

Answer 1

Answer: Yes, the expressions are equivalent, because when substituting the value, 4, for the variable in both expressions, they both simplify to the same value, 13.

Step-by-step explanation:

Answer 2

Answer:

Acacia is trying to decide whether to purchase a new sofa and armchair using an installment credit offer from the store or to wait until she has enough cash ...

Step-by-step explanation: