Question

An article which costs $4 272 may be purchased by depositing $1 680 and making monthly payments of $96. in how many months will complete payment be made?

Answer 1

To determine the number of months required to complete payment for the article after an initial deposit, subtract the deposit from the total cost and divide the remainder by the monthly payment. It will take 27 months to pay off the article's cost.

Step-by-step explanation:

The student is asking about a basic arithmetic problem related to loan amortization. To find the number of months it will take to complete the payment, we need to subtract the deposit from the total cost of the article. To solve it, one needs to determine the total amount still to be paid after the initial deposit and then divide this remaining balance by the fixed monthly payment amount. Here is the step-by-step solution:

1. Subtract the deposit from the total cost of the article to find the remaining amount owed: $4,272 - $1,680 = $2,592.
2. Divide the remaining amount by the monthly payment to find out how many months it will take to pay off the balance: $2,592 / $96 = 27 months.

Therefore, it will take 27 months to complete payment of the article after making the initial deposit.