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No matter which brand he chooses, Gareth will pay for the freezer on his credit card, which has an APR of 9. 31%, compounded monthly. It takes Gareth eighteen months to pay off a Brand S freezer and four years to pay off a Brand R freezer. Assuming that Gareth makes no other purchases or payments with his credit card, over the next ten years, which brand of freezer will have a lower lifetime cost, and how much lower will it be? (Round all dollar values to the nearest cent. ) a. Brand R will be $548. 18 cheaper than Brand S. B. Brand R will be $712. 40 cheaper than Brand S. C. Brand S will be $85. 00 cheaper than Brand R. D. Brand S will be $164. 22 cheaper than Brand R.

Respuesta :

The Brand R credit card for the freezer will be best choose for Gareth as it is $548. 18 cheaper than Brand S.

What is APR (annual percentage rate)?

APR or annual percentage rate is the rate of interest which is charge annually on the principal amount of borrowed money.

Given information-

The APR of credit cart is 9.31 percent.

It takes Gareth eighteen months to pay off a Brand S freezer and four years to pay off a Brand R freezer.

Total number of years is 10.

To choose the best credit card for freezer will have a lower lifetime cost we need to compare the amount of APR of both the credit cards.

Let the amount of freezer 1000. Thus the APR amount for 18 months will be less as the time period of the interest rate is less.

Thus on comparing the APR it is said that the B and R will be $548. 18 cheaper than Brand S.

Learn more about the APR here;

https://brainly.com/question/25658911

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