A store offers two payment plans under the installment plan


A store offers two payment plans. Under the installment plan, you can pay 25% down immediately and 25% of the purchase price at the end of each of years 1, 2 and 3. If you pay your entire bill immediately, you can take a 5% discount from the purchase price. Which of the following statements is correct if you can borrow or lend funds at 6%?

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Finance Basics: A store offers two payment plans under the installment plan
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