Question

10. Carl wants to buy a television that costs $400,

including taxes. To pay for the television, he will use
a payment plan that requires him to make a down
payment of $150, and then pay $70.50 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?

Answer 1

Calculate the total he will pay:

70.50 x 6 months = 423

423 + 150 = 573

He pays a total of 573

Find the difference from what he pays to what the actual price was:

573 - 400 = 173

Divide the difference by the actual price:

173 / 400 = 0.4325

Multiply by 100:

0.4325 x 100 = 43.25% increase