Show all work. Label and clearly explain your answer. This is very important. 1) You must explain how you arrived at

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Show all work. Label and clearly explain your answer.
This is very important. 1) You must explain
how you arrived at your answer in order to get full credit.
2) If you do show your work, and your answer is wrong, you can
still earn a substantial amount of credit depending on how serious
the error is. 3) If your answer is wrong, and you don't show
your work, you will get a zero.
Jenny’s Flying Rugs and Carpets Consortium has advertised that
they are offering reduced financing on their new Flying Knot
model. The Flying Knot costs $29,999.99, and the financing
offer is 1% annual rate, compounded monthly (.01/12 = 0.00083 per
month) if you finance the rug for 5 years using monthly installment
payments.
The special financing rate, of course, is only available to
customers who buy the Flying Knot. The market interest rate
for carpet loans, available at numerous banks is 5% annual rate,
compounded monthly (.05/12 = 0.004167 per month).
HINT: The discount in terms of the sale price will
equal the present value of the per month discount.