Question

Using a layaway plan, Bill bought a set of golf clubs for $1700. He has 6 months to pay off his balance after paying a down payment. The store does not charge a fee for their program. If Bill makes payments of $201 a month, how much did he need to use as a down payment in order to pay for the clubs

Answer 1

$494

Explanation:

Given that:

Cost of golf club = $1700

Number of months taken to balance payment after down payment = 6 months

Amount paid per month = $201

The down payment made :

Cost of golf clubs - (monthly payment * number of months)

$1700 - ($201 * 6)

$1700 - $1206

= $494

Hence, the downpayment made = $494