DSSTPF.092 Compare Cash and Financed Purchase Prices
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Andre considers a promotional financing plan for a freezer. The cash offer is $1,540 minus a $150 cash discount. The promotional plan would require 24 payments of $71.46, a $45 activation fee, and a $270 deferred-interest charge if the balance is not cleared by the promotional deadline. Assuming the deferred-interest charge applies, how does financing compare with paying cash?