Question

ALGEBRA Amanda and Charles Mercer want to remodel their coffee shop. They would like to

finance part of the cost but do not want the amount financed to be more than $10,000. The total
cost of remodeling the shop is $13,480.
a. Determine how much they need for a down payment.
b. Will a 25% down payment be enough?

Answer 1

No. A 25% downpayment results in a balance of $10,110, $110 above the maximum they want to bvorrow.

Explanation:

If the total remodelling cost is $13,480. a 25% downpayment would be:

($13,480)*(0.25) = $3,370

After making a $3370 downpayment, Amanda and Charles will still owe:

($13,480)-($3,370) = $10,110

They would need to increase their downpayment by $110 to stay below the $10,000 maximum they want to borrow.