Question

Choose the correct answers for (a) the total installment price, (b) the carrying charges, and (c) the number of months needed to save the money at the monthly rate to buy the item for its cash price. A dinette table with a cash price of $300 at $10.00 down and $16.00 per month for 24 months.

Answer 1

A)10+(16×24)
=394

B)394−300
=94

300÷16
C)=18.75

Answer 2

(a) $394

(b) $94

(c) 19 months

Explanation:

Cash price = $300 , Down payment = $ 10 , Monthly payment = $16/month , No. of months the installment is paid = 24

(a)

`Total\thinspace Installment\thinspace Price = Down payment + (No.\thinspace of\thinspace Months\cdot Monthly\thinspace Payment)\\=10+(24\cdot 16)\\=10+384`= $ 394

(b)

`Carrying\thinspace Charges = Total\thinspace Installment\thinspace Price-Cash\thinspace Price\\=394-300`

= $ 94

(c)

`No.\thinspace of\thinspace Months\thinspace Needed\thinspace to\thinspace Save\thinspace for\thinspace Cash\thinspace Price=(Cash\thinspace Price)/(Monthly\thinspace Payment)\\=(300)/(16)\\=18.75\approx 19\thinspace Months`