Mr cadwell wants to purchase a motorcycle. he has financing options a and b to chose from, as shown below. Option A-
Down Payment: $1,000
Monthly payment for 3 years: $85

Option B-
Down payment: $1,200
Monthly Payment for 3 years: $85

The purchase of the motorcycle is $3,500, including tax. Based on the info provided in the table, which statement is true?

Option B is better
Option A is better

Option A is better.

Step-by-step explanation:

We will observe both plans one by one to determine which one is better i.e. which one will has less interest to pay.

So,

Option A:

Down Payment: $1,000

Monthly payment for 3 years: $85

The total amount in installments will be:

The total price of bike will be:

Option B:

Down Payment: $1,200

Monthly payment for 3 years: $85

The total amount in installments will be:

The total price of bike will be:

We can see that interest in Option A is less than interest in Option B that means Mr. Cardwell will have to pay less amount in Option A.

Hence,

Option A is better.

what's that

8496 cars

step-by-step explanation: