Sam has two offers to buy his is motorcycle. The first offer is a cash price of $15,000. The second offer is a down payment of $5,000, and quarterly payments of $725 for four years. If his money can earn 5.5% compounded quarterly, which option should Sam choose? What is the economic advantage?

Compounded Quarterly

A method where interest is calculated and added to the principal amount four times a year.

Economic Advantage

A benefit that gives an individual, business, or country a superior position in economic activities.

Motorcycle

A two-wheeled vehicle powered by an engine, designed for individual or dual riders.