Question

Mary Lee bought a stove for $460. She made a down

payment of $60 and paid $42 a month for 10 months.
Find the total installment price of the stove.

Answer 1

Im pretty sure it is 20 dollars... let me know if im right.

Explanation:

Answer 2

The total price of the stove, after installments, was:

• $480.

Explanation:

Although the stove had an initial value of $460, you should understand that when you purchase a product or service in installments, you regularly pay a little more than the initial cash value, due to some interest that is generated during that time, in this case, Mary Lee made a down payment of $60, and also made 10 monthly payments of $42, so it can be calculated as follows:

• Stove final value = $60 + ($42 * 10)
• Stove final value = $60 + $420
• Stove final value = $480

With which, you can deduce that the interest generated during the ten months was $20.