Question

Jake wants to purchase a car. The price of the car with tax is $15,250. If he can save $1,500 per month, how long will it take him to save up for the car?​2. if the bank offers to finance Jake’s car in Example 1 with an installment plan, Jake would only need to put 10% of the price down, and he could finance the rest by paying $525 per month for three years.

Answer 1

It will take Jake 10.17 months to save up enough money to purchase a car. If he chooses to finance the car, he would need to put 10% down and pay $381.25 per month for three years.

Step-by-step explanation:

In order to calculate how long it will take for Jake to save enough money to purchase a car, we need to divide the total cost of the car by the amount he saves each month. The total amount Jake needs to save is $15,250, and he saves $1,500 per month. Using division, we can find that it will take him 10.17 months to save up enough for the car.

If the bank offers to finance Jake's car, he would only need to put 10% down, which is $15,250 * 0.1 = $1,525. The remaining amount, $15,250 - $1,525 = $13,725, can be financed over three years or 36 months. Dividing $13,725 by 36, Jake would need to pay $381.25 per month for three years.