Gareth has just remodeled his kitchen and wants to buy one of two stand-alone freezers. consider the following table, which
displays the prices, electricity costs, and lifespans of the two freezers he is considering:
l
brand
price
avg. cost/wk
lifespan
brand r
$575
$3.17
10 years
brand s
$98
$4.54
2 years
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.)
a brand r will be $548.18 cheaper than brand s.
b. brand r will be $712.40 cheaper than brand s.
c. brand s will be $85.00 cheaper than brand r.
d. brand s will be $164.22 cheaper than brand r.