Which is a better deal? Sabrina wants to buy a new digital camera. The one she wants is currently on sale for $300. She could borrow the money at a monthly interest rate of 4% simple interest and pay it off after 6 months. Her other option is to work for 6 months and then pay cash, but the camera will no longer be on sale and will cost $350.
Which option will cost her the least money? Include calculations to justify your advice. Homework Help ✎
Find how much the camera would cost if Sabrina decides to buy the camera and pay it off after 6 months.
300 + 300(0.04)(6)
Compare this price with the price it would be if she waited to buy the camera when it is not on sale.
Purchasing the camera when it is not on sale will cost Sabrina less money.
Remember to show your work.