Question

Ruben wants to be professional photographer and is saving up to buy a new camera priced at $2,900. After searching for the best credit plan,

he chooses an installment plan that requires a 15% down payment and monthly payments of $250 for 12 months.
in finance charges.
Ruben will need to pay
for the down payment. He will pay

Answer 1

Ruben's down payment for the camera is $435, and over 12 months he will pay a total of $3,435, including the down payment.

Step-by-step explanation:

Ruben is looking to buy a new camera for $2,900 and has chosen an installment plan with a 15% down payment followed by monthly payments of $250 for 12 months. To calculate the down payment, we take 15% of the price of the camera:

1. 15% of $2,900 = 0.15 × $2,900 = $435.
2. The down payment is therefore $435.
3. After the down payment, the remaining amount to be financed is $2,900 - $435 = $2,465.
4. With monthly payments of $250 for 12 months, Ruben will pay a total of $250 × 12 = $3,000.
5. To find the total cost including the down payment, add the down payment to the total of the monthly payments: $435 + $3,000 = $3,435.

Therefore, Ruben will pay a down payment of $435 and will pay a total of $3,435 over the course of the 12 months.