Question

Einstein Office Equipment has a rental plan for office machines. A fax machine that lists for $722.98 can be rented for 22% of the price annually. The state imposes a usage charge of 3.2%. If Stephen Hawking Travel decides to rent the fax machine, what will its total monthly rental charge be?

Answer 1

$13.68

Explanation:

We know that the fax machine which costs for $722.98 can be rented for 22% of the price annually.

So annual rent of fax machine = 22% of $722.98

`=(22)/(100)` ×
`722.98 =` $159.06

Tax on the rent = 3.2% of $159.06

`=(3.2)/(100)` ×
`159.05 =` $5.09

Total rent including tax = $159.06 + $5.09 = $164.15

Monthly rent for fax machine = $164.15/12 = $13.68

Answer 2

$13.68

Explanation:

Assuming they rent for 1 year, the cost is broken down as follows:

Annual renting cost = 22% of 722.98 =
`(22)/(100)*722.98=0.22*722.98=159.06`

Usage charge = 3.2% of 159.06 =
`(3.2)/(100)*159.06=0.032*159.06=5.09`

Thus,

Total annual charge = Annual renting cost + Usage charge = 159.06 + 5.09 =164.15

Monthly rental charge would be 164.15 divided by 12 (12 months in 1 year):

`(164.15)/(12)=13.68` dollars