Question

Spencer puts an $1880 item on layaway by making 20% down payment and agreeing to pay $170 a month. How many months sooner would he pay off the item if he increased his monthly payment to $260?

Answer 1

Spencer will pay off the item 3 months sooner if he pay $260 instead of $170 a month

Explanation:

Total Amount = $1880

Down Payment = 20%

Monthly payment = $170

if Monthly payment increased from $170 to $260, How many months sonner Spencer will pay off?

So, First calculate the down payment

Down payment = 20% of 1880

= (20/100) * 1880

= 376

Amount left to be paid = 1880 - 376

= 1504

Total months to pay off for Spencer if he pay's $170 a month:

1504/170 = 8.8 ≈ 9 months

Total months to pay off for Spencer if he pay's $260 a month:

1504/260 = 5.7 ≈ 6 months

So, 9 -6 = 3 months

So, Spencer will pay off the item 3 months sooner if he pay $260 instead of $170 a month