How much would janet save

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Reference no: EM131959200

Janet Foster bought a computer and printer at Computerland. The printer had a $800 list price with a $100 trade discount and 2/10, n/30 terms.

The computer had a $3,460 list price with a 25% trade discount but no cash discount. On the computer, Computerland offered Janet the choice of (1) paying $135 per month for 17 months with the 18th payment paying the remainder of the balance or (2) paying 10% interest for 18 months in equal payments.

a. Assume Janet could borrow the money for the printer at 10% to take advantage of the cash discount. How much would Janet save? (Use 360 days a year. Round your answer to the nearest cent.)

Janet's savings $

b. On the computer, what is the difference in the final payment between choices 1 and 2? (Round your answer to the nearest cent.)

Difference final payment $

Reference no: EM131959200

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