John and Chelsea decide they would like to buy furniture. They choose items that amount to $ XXXXXXXXXXThe store has 2 fixed installment simple interest loan options for purchasing: Option 1: 20% down...

John and Chelsea decide they would like to buy furniture.

1. They choose items that amount to $5600.00. The store has 2
   fixed installment simple interest loan
   options
   for purchasing:

Option 1: 20% down payment and financing at 5%
simple interest per year for 3 years.

Option 2:  no down payment and financing at 5.25%
simple interest
for 4 years.

1. Which option will result in
   smaller
   finance charge (interest)?
   What will that finance charge/interest be?

1. Which option will result in the
   smaller monthly payment on this fixed installment loan? What will that monthly payment be?

1. They decide to defer any purchases and invest a $5600 bonus that Chelsea will be getting from work in a savings account. The interest rate is 1.8%
   compounded every month.  How much
   interest
   will they earn in 4 years?

1. They decide to defer any purchases and loan the $5600 bonus to a needy relative at
   5% simple interest per year.
   How long will the term of the loan need to be if they want to earn $500 in interest (assuming the loan is not paid off early).