Question

Carl wants to buy a television that costs $500, including taxes. To pay for the television , he will use a payment plan that requires him to make a down payment of $125, and then pay $ 72.50 each month for 6 months. What is the percent increase from the original cost of the television to the cost of the television using the payment plan? Explain.

A) 6%
B) 12%
C) 58%
D) 89%

Answer 1

B) 12%

Explanation:

125 + 72.50(6) = 560

(560 - 500) = 500p

60 = 500p

DEVIDE EACH SIDE BY 500

p=0.12

12%

Answer 2

(B) 12%

Explanation:

Original cost of the television = $500

Cost using the payment plan = Down payment + EMI's for 6 months

= $124 +72.5*6

= $560

Percentage increase =
`(New cost (using payment plan)-original cost)/(original cost)*100`

=
`(560-500)/(500) *100`

= 60/5

= 12%

Hence, the percent increase from the original cost of the television to the cost of television using the payment plan = 12% (C)