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

The original price is $500.
The new price with the payment plan is $560.

The percent change equation is shown in the picture.

First we find the difference or the amount of change.
560-500= 60.

To find the percent we divide 60 (the amount of change) over 500, the original amount.

60/500= 0.12.
0.12 as a percent is 12%

The answer is B. 12%