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You want to buy a new laptop computer and have obtained pricing information from two major retailers. Retailer A is offering a "no-money-down-no-interest" event. You would pay $168.50 at the end of each month for the next 12 months. To purchase the same laptop from Retailer B, you will pay $560 today, and an additional $63.50 at the end of each month for the next 18 months.
Which alternative is economically preferable if money is worth 6.6% compounded monthly?
Buy from Retailer A
Buy from Retailer B
In current dollars, how much will you save by selecting the preferred alternative? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
You will save? $
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