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. Ruben will need to pay for the down payment. He will pay in finance charges.

Answer 1

Explanation:

Ruben will pay $345 and $535 in finance charges

Answer 2

Sure, let's calculate it step by step:

1. **Down payment:**

\[15\% \text{ of } $2,900 = 0.15 \times $2,900 = $435\]

So, Ruben's down payment is $435.

2. **Total cost of the camera after the down payment:**

\[$2,900 - $435 = $2,465\]

3. **Finance charges:**

\[$2,465 (total cost after down payment) - $2,900 (original price) = -$435\]

Ruben will actually pay $435 less in finance charges, which is a benefit for him.

4. **Total amount paid over 12 months:**

\[12 \text{ monthly payments of } $250 + $435 \text{ down payment} = 12 \times $250 + $435\]

Let me calculate the final total for you.