Question

Arnold purchased a $1300 set of golf clubs on a nine-month layaway plan and had to pay a monthly payment of $158.89. What is the fee charged for the layaway plan?

Answer 1

$130.01 is the fee charged.

Explanation:

We know that Arnold purchased the set of gold for $1300. However, he has to pay $158.89 per month for 9 months, the final cost would be

`158.89(9)=1430.01`

So, the difference with the initial amount would be:

`1430.01-1300=130.01`

Therefore, the layaway plan is charging a fee of $130.01.