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Paul is going to buy a collectible vintage painting from a local art gallery. the painting is priced at $600 in the gallery. the gallery owner does accept credit cards but prefers cash. in fact, he offers to give paul a 5% discount if he can pay in cash. paul doesn't have any cash but can get a cash advance on his credit card. his credit card has an apr of 16% on credit purchases and a 32% apr on cash advances. assuming paul wants to pay the painting off over 12 months, which of the following is true? a. paul will pay a total of $696, over 12 months, if he purchases the painting with his credit card. b. paul will pay a total of $653.28, over 12 months, if he purchases the painting with his credit card. c. paul will pay a total of $782.40, over 12 months, if he purchases the painting with a cash advance for discounted purchase price. d. paul will pay a total of $708.96, over 12 months, if he purchases the painting with a cash advance for discounted purchase price.

Respuesta :

When Paul will pay the amount over 12 months, if he purchases the painting with cash advance the discounted purchase price will be $782.40. Then the correct option is C.

What is APR?

APR on a credit card is the way of saying that the interest you are charged over a year is equal to roughly of your balance.

Paul is going to buy a collectible vintage painting from a local art gallery.

The painting is priced at $600 in the gallery.

The gallery owner does accept credit cards but prefers cash.

In fact, he offers to give paul a 5% discount if he can pay in cash.

Paul doesn't have any cash but can get a cash advance on his credit card.

His credit card has an apr of 16% on credit purchases and a 32% apr on cash advances.

When Paul will pay the amount over 12 months, if he purchases the painting with cash advance the discounted purchase price will be

[tex]\rm A = 0.95 \times 600 (1+\dfrac{0.32}{12})^{12}\\\\A = 782.40[/tex]

More about the APR link is given below.

https://brainly.com/question/8846837

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