Question

Levi would like to use a credit card to make a $3000 purchase. He is considering two credit options. The first requires a down payment of $1000 followed by monthly payments of $125. The second requires a down payment of $1300 followed by monthly payments of $110. The two options accumulate the same amount of interest and require the same number of monthly payments.

What is the amount of interest for this loan?

$800
$500
$1,000
$320

Answer 1

$500