Final answer:
The down payment Angie made is $198. The total amount of the monthly payments is $2,088. Angie paid $2,286 for the snow thrower on the installment plan, with a total finance charge of $306.
Step-by-step explanation:
Let's proceed step-by-step to solve Angie's installment plan question.
a) Down Payment Calculation
First, we calculate the down payment, which is 10% of the total cost:
Down payment = 10% of $1,980
Down payment = 0.10 × $1,980 = $198
b) Total Amount of Monthly Payments
Next, we calculate the total amount of the monthly payments. Angie is going to make 18 monthly payments of $116 each:
Total monthly payments = 18 × $116 = $2,088
c) Total Cost on the Installment Plan
The total amount paid for the snow thrower on the installment plan will be the sum of the down payment and the total monthly payments:
Total cost = Down payment + Total monthly payments = $198 + $2,088 = $2,286
d) Total Finance Charge Calculation
Finally, the total finance charge is the extra amount Angie pays on top of the initial price of the snow thrower:
Total finance charge = Total cost - Original price
Total finance charge = $2,286 - $1,980 = $306