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QUESTION

You are going to buy a new I-Pad that costs $699.

You are going to buy a new I-Pad that costs $699. You have a choice of charging it to your credit card which carries an annual rate of 18% or the store is offering a payment plan of $65 per month for 12 months. If you charge it to your credit card, you plan to pay it off in 12 equal monthly payments. Given that you can't afford to pay cash for the I-Pad, which payment plan should you choose?

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