A Furniture Company Is Offering a Choice of Deals

question 29

Multiple Choice

A furniture company is offering a choice of deals. You can receive $500 cash back on the purchase, or a 3 percent APR, 2-year loan. The price of the dining room set is $5,000 and you could obtain a 2-year loan from your credit union at 4 percent APR. What is the cost per month of each deal?

• A)cash back: $193.42, 4 percent APR: $217.12
• B)cash back: $193.42, 2 percent APR: $214.91
• C)cash back: $195.41, 2 percent APR: $217.12
• D)cash back: $195.41, 2 percent APR: $214.91