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Remodeling the Kitchen Answer the following questions.
Ramona Garcia will be remodeling her kitchen before she places her home on the market to sell. She researched what three local companies would charge her for the remodeling and their best financing option for each company. Her research revealed the following results.
Company
Total Remodeling Cost
Financing Terms Ramona is Considering
Large Home Improvement Store
$13,200
Financing through the bank servicing the national home improvement company: 1 year 0% financing with a minimum monthly payment of $100; 16.99% APR for the remaining 3 years
Local Small Business Home Improvement Company
$11,800
Financing through her local credit union: 3% origination fee to be paid first then 7.5% APR for 5 years
Online Construction Business
$10,200
Financing through an online banking service: $1,000 applied toward the project before payback begins then 11.9% APR for 4 years.
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