Interactive Exercise 11-7: Calculating the Interest Rate Jamie is buying furniture for his new apartment, which costs $10,000. Jamie has three payment options. The first option is to pay cash. The second option is a credit plan offered by the store, in which Jamie would pay $2,000 down, and payments of $249.66 each month for three years. The third option is to borrow the full amount from the bank and pay $316.37 per month for three years.