A Department Store Is Offering a Television for $720 Now

Multiple Choice

A department store is offering a television for $720 now or can pay $725 in 90 days. If interest is 10%, determine whether a customer should purchase now or in 90 days.

A) Buy now - Savings of $10.52
B) Buy now - Savings of $12.45
C) No difference between two options
D) Buy later - savings of $10.52
E) Buy later - savings of $12.45