document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=778474>Question 778474</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Hello, I have tried my best on these questions and I have difficulty the last three questions. Please help.\r<BR>\n" );
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document.write( "11-1 90 Days Same as Cash!<BR>\n" );
document.write( "Sara had just rented her first apartment starting December 1 before beginning college in January. The<BR>\n" );
document.write( "apartment had washer and dryer hook-ups, so Sara wanted to buy the appliances to avoid trips to the<BR>\n" );
document.write( "laundromat. The Saturday newspaper had an advertisement for a local appliance store offering “90 days,<BR>\n" );
document.write( "same as cash!” financing. Sara asked how the financing worked and learned that she could pay for the<BR>\n" );
document.write( "washer and dryer anytime during the first 90 days for the purchase price plus sales tax. If she waited<BR>\n" );
document.write( "longer, she would have to pay the purchase price, plus sales tax, plus 26.8% annual simple interest for<BR>\n" );
document.write( "the first 90 days, plus 3% simple interest per month (or any part of a month) on the unpaid balance after<BR>\n" );
document.write( "90 days. Together, the washer and dryer cost $699 plus the 8.25% sales tax. Sara knew that her tax<BR>\n" );
document.write( "refund from the IRS would be $1,000 so she bought the washer and dryer confident that she could pay off the balance within the 90 days.<BR>\n" );
document.write( "1. If Sara pays off the balance within 90 days, how much will she pay?<BR>\n" );
document.write( "2. If Sara bought the washer and dryer on December 15, using the exact interest, what is her deadline for paying no interest in a non-leap<BR>\n" );
document.write( "year? In a leap year? Is the finance company likely to use exact or ordinary interest and why?<BR>\n" );
document.write( "3. If Sara’s IRS refund does not come until April 1, what is her payoff amount? (Assume ordinary interest and a non-leap year.)<BR>\n" );
document.write( "4. How much did it cost her to pay off this loan 17 days late? What annual simple interest rate does this amount to? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #474913 by </B><A HREF=/tutors/aboutme.mpl?userid=psbhowmick><B>psbhowmick(878)</B></A><img src=\"/images/stars/stars-11.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=psbhowmick><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=psbhowmick><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=474913\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> If you need the complete solution then send me an email. </SPAN>\n" );
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