Question

A customer enrolled in a one-year product purchase plan for the cost of $60 per month. After six months, the customer received a monthly discount of 20%. What is the total amount the customer will pay for the one-year plan?

A) $600
B) $660
C) $720
D) $780

Answer 1

The total amount the customer will pay for the one-year plan is $648.

Step-by-step explanation:

The customer is enrolled in a one-year product purchase plan for $60 per month. After six months, the customer receives a 20% monthly discount. To calculate the total amount the customer will pay for the one-year plan, we need to calculate the total cost for the remaining six months and then add it to the cost of the first six months without the discount.

For the first six months, the customer pays $60 x 6 = $360 per month.

For the last six months with a 20% discount, the customer pays $60 - (0.20 x $60) = $48 per month.

The total cost for the remaining six months is $48 x 6 = $288.

Therefore, the customer will pay a total of $360 + $288 = $648 for the one-year plan.