Math  /  Numbers & Operations

Question20. Jessica had to take her cat to the vet for emergency surgery which cost $400.00\$ 400.00. She doesn't have the cash to pay right now but expects to be able to pay off any loan in 30 days. Here are her options for payment: - She can pay in instalments. The vet will let her make monthly payments of $100.00\$ 100.00 for 4 months plus an administration fee of $20.00\$ 20.00. - She can borrow the money from her bank on her personal line of credit at an interest rate of 8%8 \% per annum. - She can get a payday loan at an interest rate of 1%1 \% per day. a. Calculate the total cost of each payment option. Show FSS and clearly indicate which option is which.

Studdy Solution
Compare the total costs of each option:
- Installment payments: \$420 - Personal line of credit: \$402.63 - Payday loan: \$520
The least expensive option is the personal line of credit at \$402.63.
The total costs for each payment option are: - Installment payments: $420\$420 - Personal line of credit: $402.63\$402.63 - Payday loan: $520\$520
The least expensive option is the personal line of credit.

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