Question

Omar wants to purchase a new IPhone. It costs $1,000. To pay for the phone he will

participate in the following payment plan: He will make a down payment of $250, then
make 6 monthly payments of $150 each.
a) How much will he pay for the phone (in total), after the down payment and monthly
payments?
b) What is the percent increase from the original cost of the IPhone, to the price Omar
will pay for the phone on his payment plan?

Answer 1

Answer: (a) $ 1,150

(b) 15%

Explanation:

(a) The original cost of the phone is $1000

He will make a down payment of $250

Also , 6 monthly payments of $150 each, which implies : 150 x 6

= $900

Altogether , he will pay

$250 + $900 = $ 1,150

(b) Original cost of the phone is $1000

Amount Omar paid is $1,150

difference in price = $1,150 - $1000

= $150

% increase = increase / original price x 100

% increase = 150/1000 x 100

% increase = 15 %