Math Is Fun Forum

oem7110

Member

Registered: 2010-12-08

Posts: 24

Which plan is better for installment plan?

Installment Plan A
If I purchase items over $100,000, there is 0% interest for 48 months installment plan, but there is $65 monthly service fee.
Installment Plan B
If I purchase items over $50000, there is 0% interest for 48 months installment plan, but there is $72 monthly service fee.

If I need to purchase an item about $80000 then I have to choose Installment Plan B,
If I need to purchase an item about $80000, and purchase cash coupon $20000 then I can choose Installment Plan A,

Should I purchase cash coupon for $20000 right now for installment plan A? or
Should I only purchase the item at $80000 for installment plan B?

Does anyone have any suggestions on which one is better in term of money management?

Thanks in advance for any suggestions

Bob

Administrator

Registered: 2010-06-20

Posts: 10,184

Re: Which plan is better for installment plan?

hi oem7110

If the monthly service fee is always $72 for 50 000 ≤ amount < 100 000

and always $65 for 1000 000 ≤ amount

then you will save (72-65) x 48

But what is the price of a cash coupon?

I googled 'cash coupon' and got links to lots of short term money lenders.

But you seem to be getting your $20 000 from the company you are purchasing from.

So what are the terms for this loan?

That makes all the difference.

Bob

Last edited by Bob (2011-12-17 21:20:54)

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Children are not defined by school ...........The Fonz
You cannot teach a man anything;  you can only help him find it within himself..........Galileo Galilei
Sometimes I deliberately make mistakes, just to test you!  …………….Bob

oem7110

Member

Registered: 2010-12-08

Posts: 24

Re: Which plan is better for installment plan?

hi oem7110

...
But what is the price of a cash coupon?
...
Bob

Cash coupon can be used like cash within specific store with 5 years period before it expires.
It can be any gift to your friends during christmas season, so they can purchase what they want.

Does it seems to the right decision to purchase the $20000 cash coupon?
Thanks you very much for any suggestions

Bob

Administrator

Registered: 2010-06-20

Posts: 10,184

Re: Which plan is better for installment plan?

Well if they are free of additional cost, then there is only one reservation.

Can you spend it sensibly before it expires?

Only you can answer that.

Bob

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Children are not defined by school ...........The Fonz
You cannot teach a man anything;  you can only help him find it within himself..........Galileo Galilei
Sometimes I deliberately make mistakes, just to test you!  …………….Bob