Question

A quality snowboard rents for $50.00 a day at ski lodges. You can purchase a snowboard for $650.00. You can pay that amount in cash, or you can choose a credit plan and pay a $150.00 down payment and then 24 monthly installments of $25.00. How much more will you pay for the snowboard if you choose the credit plan?

a) $150.00
b) $300.00
c) $400.00
d) $550.00

Answer 1

If you choose the credit plan, you will pay $100.00 more for the snowboard compared to purchasing it in cash.

Step-by-step explanation:

If you choose the credit plan, you will pay a $150.00 down payment and 24 monthly installments of $25.00. The total amount paid on the credit plan can be calculated by multiplying the number of installments by the monthly installment amount and adding the down payment: 24 x $25.00 + $150.00 = $750.00. Subtracting the cost of purchasing the snowboard in cash ($650.00) from the total amount paid on the credit plan ($750.00) gives us the difference: $750.00 - $650.00 = $100.00. Therefore, if you choose the credit plan, you will pay $100.00 more for the snowboard compared to purchasing it in cash.