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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. ).



Answer :

The correct option is (a) Gareth will choose the Brand R credit card for the freezer because it is $548.18 less expensive than the Brand S.

An annual percentage rate, or APR, is used to express the interest rate that is applied to the principal amount of a loan.

The credit card's yearly percentage rate is 9.31%.

Gareth takes four years to pay off a Brand R freezer compared to just 18 months for a Brand S freezer.

Overall, ten years have gone.

To determine which credit card has the lowest lifetime cost for a freezer, we must compare the APRs of the two cards.

Let's say there are 1000 freezers. As a result, the APR for 18 months will be lower because the interest rate's duration is shorter.

The B and R will therefore be $548.18 less expensive than Brand S, according to a comparison of the APR.

Learn more about APR at

brainly.com/question/26589207

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