Question

A television set sells for $1639 on the installment plan which includes the finance charge the payment plan calls for 10% down and the balance and 18 equal payments the amount of each payment is:

A:$82.95
B:$165.90
C:$78.65
D:$59.00

Answer 1

A

Explanation:

First the plan is $1.659 but has 10% down

It means the right amount is= $1.659*(1-0,1)= $1.493,1

Remember 1 represents 100% and 0,1 represents 10%

Now, the amount will be pay in 18 equal payments

$1.493,1/18= $82,95

Each payment is $82,95