Question

A mahogany desk with a cash price of $810 is offered on the installment plan at $50 down and $58 per month for 15 months. What is the carrying charge?

Answer 1

Answer: The carrying charge will be $110.

Step-by-step explanation:

Since we have given that

Cash price of a mahogany desk = $810

Down payment=$50

Remaining amount is given by

`810-50=\$760`

Installment plan of paying $58 per month for 15 months ,

Total amount payable for 15 months is given by

`58* 15=\$870`

So, the carrying charges will be

`870-760=\$110`

Hence, the carrying charge will be $110.

Answer 2

Amount financed
810−50=760

Total paid
58×15=870

Carrying charge
870−760=110