Let's analyze the provided payment plans for Veronique and Lily to determine who made a better financial decision.
First, we need to calculate the total cost each of them will pay over the respective periods.
For Veronique:
- Monthly payment amount: [tex]$25
- Number of months: 10
To find Veronique's total cost:
\[ \text{Veronique's total cost} = 25 \text{ dollars/month} \times 10 \text{ months} = 250 \text{ dollars} \]
For Lily:
- Monthly payment amount: $[/tex]35
- Number of months: 7
To find Lily's total cost:
[tex]\[ \text{Lily's total cost} = 35 \text{ dollars/month} \times 7 \text{ months} = 245 \text{ dollars} \][/tex]
Now we compare the total costs:
- Veronique’s total cost: 250 dollars
- Lily’s total cost: 245 dollars
From the comparison, we see that Lily’s total cost (245 dollars) is less than Veronique’s total cost (250 dollars).
Therefore, the correct and better financial decision was made by Lily, because her final cost, including finance charges, is less than Veronique's. The correct choice is:
Lily because her final cost, including finance charges, is less than Veronique's.
