$6,000 cash or one half down and 12 monthly payments of $275, the difference between the two plans is?
The two plans are:
1. $6,000 cash upfront
2. One-half down ($3,000) plus 12 monthly payments of $275.
The difference between these two plans is the amount paid upfront. Plan 1 requires a one-time payment of $6,000, while plan 2 only requires a down payment of $3,000 and the remaining $3,300 is paid in 12 equal monthly payments of $275. So plan 2 spreads out the cost over time with monthly payments, while plan 1 requires a larger upfront payment.
Are we not charged any interest ????
Silly answer by the bot.
btw, the bot is wrong, after "half down" would leave 3000, not 3300
with no interest, clearly the cash payment is better, the monthly payments
should be 3000/12 or 250, not 275
The payment of 275 would be an interest rate of 18% pa compounded monthly