Question

The $1,008 paid by the Nobles(problem one) to buy the refrigerator included an interest charge of $135. What was the cash cost of the refrigerator?

Problem one:
Mr. and Mrs. Jack Nobles bought a refrigerator for $1,008. They agreed to make 12 equal payments. How much more that $50 will each payment be?

Answer to Problem one: $34

Answer 1

cost of the refrigerator = $873

$34 will be more than $50 each payment

Explanation:

Given data

principal = $1008

interest = $135

installment = 12

to find out

the cash cost of the refrigerator and How much more that $50 will each payment

Solution

cost of the refrigerator = principal - interest ...........1

put the value principal and interest in equation 1

cost of the refrigerator = $1008 - $135

cost of the refrigerator = $873

we have installment 12 for $1008 i.e.

each installment = $1008 / 12

each installment = $84

for last part $84 each installment so we can say $84 - $50 = $34

$34 will be more than $50 each payment