You buy a TV for $1,000 on credit. You pay no money down. No payments are required for 1 year. Interest is 11%. Only annual payments are allowed.
a. What is your payment if you pay it all off at the end of the year?
b. What is your annual payment if you pay it off in two years?
c. What is your annual payment, if instead of buying, you lease it for 4 years, but there is no payment due for the first year, interest is 11%, and the ending buy out option is $200.