Question

Kirsten purchased a raincoat priced at $139 on the installment plan. She made 12 payments of $12. A finance charge of $30 was added. How much was her

down payment?
$30
$25
$26
$28

Answer 1

$25

Explanation:

The raincoat cost $139.

The finance charge was $30.

The total she had to pay was $139 + $30 = $169.

She paid 12 payments of $12.

12 × $12 = $144

She paid $144 in 12 payments.

$169 - $144 = $25

Her down payment was $25.

Answer 2

To find the down payment, we need to subtract the finance charge and sum of all the monthly payments from the total cost of the raincoat.

Total cost of the raincoat = $139

Sum of all the monthly payments = $12 x 12 = $144

Finance charge = $30

Down payment = Total cost of the raincoat - Sum of all the monthly payments - Finance charge

Down payment = $139 - $144 - $30

Down payment = $-35

The down payment is negative, which does not make sense in this context. Therefore, something is not right with the given information.