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Was postponing her purchase a good trade-off for dorothy

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Point 1: Dorothy lacks cash to pay for a $1,680 dishwasher. She could buy it from the store on credit by making 12 monthly payments of $145. The total cost would then be $1,740. Instead, Dorothy decides to deposit $140 a month in the bank until she has saved enough money to pay cash for the dishwasher. One year later, she has saved $1,797.60-$1,680 in deposits plus interest. When she goes back to the store, she finds the dishwasher now costs $1,915.20. Its price has gone up 14 percent, the current rate of inflation.

Question 1: From the financial standpoint, was postponing her purchase a good trade-off for Dorothy?

Reference no: EM132482926

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