Problema Solution
Jean bought a $1980 snow thrower on a installment plan. The installment agreement included a 10% down payment and 18 monthly payments of $116 each. How much is the down payment? What is the total amount of monthly payments? How much did jean pay for the snow thrower on the installment plan? What is the finance charge?
Answer provided by our tutors
How much is the down payment?
0.10*1980 = $198 down payment
What is the total amount of monthly payments?
18*116 = $2,088 total amount of monthly payments
How much did jean pay for the snow thrower on the installment plan?
$198 + $2,088 = $2,286 installment plan
What is the finance charge?
$2,286 - $1,980 = $306 finance charge