Question

Shania bought a $1,250 drum set on the installment plan. The installment agreement included a 10% down payment and 15 monthly payments of $82 each. a. How much is the down payment? b. What is the total amount of the monthly payments? c. How much will Shania pay for the drum set on the installment plan? d. What is the finance charge?

Answer 1

a. The down payment is $125. b. The total amount of the monthly payments is $1,230. c. Shania will pay $2,430 for the drum set on the installment plan. d. The finance charge is $1,180.

Step-by-step explanation:

a.To find the down payment, we need to calculate 10% of the total cost of the drum set. The drum set costs $1,250, so the down payment is $1,250 x 0.10 = $

b. To find the total amount of the monthly payments, we need to calculate the number of payments multiplied by the amount of each payment. The installment agreement includes 15 monthly payments of $82 each. So the total amount of the monthly payments is $82 x 15 = $

c. To find the total amount Shania will pay for the drum set, we need to add the down payment and the total amount of the monthly payments. So the total amount Shania will pay is $ + $ = $

d. The finance charge is the difference between the total amount Shania will pay for the drum set and the original cost of the drum set. So the finance charge is $ - $1,250 = $