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Alternative Payment Plans for a New Purchase

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The following payment plans are offered on the purchase of a new refrigerator.

Plan A $375 cash
Plan B 8 monthly payments of $55
Plan C $100 cash down and 6 monthly payments of $50.

Which plan is the best if interest is 24% annually, compounded monthly for the buyer? And for the seller?

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Solution Summary

Alternative payment plans for a new purchase is determined. The monthly payments are provided.

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Please see the attached file.

From buyer point of view

Plan A = $ 375
Plan B = $ 55 monthly payment

Monthly interest ...

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