Janet Foster bought a computer and printer at Computerland. The printer had a $860 list price with a $100 trade discount and 210210 , n30n30 terms. The computer had a $4,020 list price with a 25% trade discount but no cash discount. On the computer, Computerland offered Janet the choice of (1) paying $150 per month for 17 months with the 18th payment paying the remainder of the balance or (2) paying 6% interest for 18 months in equal payments. Assume Janet could borrow the money for the printer at 6% to take advantage of the cash discount. How much would Janet save? Note: Use 360 days a year. Round your answer to the nearest cent. On the computer, what is the difference in the final payment between choices 1 and 2? Note: Round your answer to the nearest cent.

Janet Foster bought a computer and printer at Computerland. The printer had a $860 list price with a $100 trade discount and 210210 , n30n30 terms. The computer had a $4,020 list price with a 25% trade discount but no cash discount. On the computer, Computerland offered Janet the choice of (1) paying $150 per month for 17 months with the 18th payment paying the remainder of the balance or (2) paying 6% interest for 18 months in equal payments. Assume Janet could borrow the money for the printer at 6% to take advantage of the cash discount. How much would Janet save? Note: Use 360 days a year. Round your answer to the nearest cent. On the computer, what is the difference in the final payment between choices 1 and 2? Note: Round your answer to the nearest cent.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 12EA: Markson and Sons leases a copy machine with terms that include a fixed fee each month of $500 plus a...

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Janet Foster bought a computer and printer at Computerland. The printer had a $780 list price with a $100 trade discount and 2/10, n/30 terms. The computer had a $3,280 list price with a 25% trade discount but no cash discount. On the computer. Computerland offered Janet the choice of (1) paying $130 per month for 17 months with the 18th payment paying the remainder of the balance or (2) paying 9% interest for 18 months in equal payments. a. Assume Janet could borrow the money for the printer at 9% to take advantage of the cash discount. How much would Janet save? (Use 360 days a year. Round your answer to the nearest cent.) O Answer is complete and correct. Janet's savings 10.27 O b. On the computer, what is the difference in the final payment between choices 1 and 2? (Round your answer to the nearest cent.) 8 Answer is complete but not entirely correct. Difference final payment 176.98 X
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