Question

Tiffany put a $1550 item on layaway by making a 20% down payment and agreeing to pay $120 a month. How many months sooner would she pay off the item if she increased her monthly payment to $180?

A. 18 months sooner
B. 11 months sooner
C. 4 months sooner
D 7 months sooner

Answer 1

Option: C is the correct answer.

C. 4 months sooner.

Explanation:

Total amount of the item is: $ 1550

Also, Tiffany paid 20% of the amount by down payment.

Hence, the amount left to pay after the down payment is:80% of total amount.

i.e. 0.80 of total amount.

= 0.80×1550

= $ 1240

Now the number of month it will take if she pay $ 120 a month is:

`=(1240)/(120)=10.3333`

which is approximately equal to 11 months.

Similarly, the number of month it will take if she pay $ 180 a month is:

`=(1240)/(180)=6.8889`

which is approximately equal to 7 months.

Hence, the number of months sooner she will pay off is:

11-7=4 months.

Answer 2

1550*0.8=1240

1240/120 = approximately 11 months to pay off

1240/180=approximately 7 months to pay off

11-7 =4

so it would be paid off 4 months sooner, so C is the answer