Question

Depot Headquarters has a new promotional payment plan. All purchases can be paid off on

the installment plan with no interest, as long as the total is paid in full within twelve months.

There is a $68 minimum monthly payment required. If the Koslow family buys a hot tub for

$6,283, and they make only the minimum payment for 11 months, how much will they have

to pay in the 12th month?

Answer 1

If the Koslow family makes only the minimum payment for 11 months, they would have paid a total of $68 x 11 = $748.

To determine how much they would have to pay in the 12th month to pay off the balance, we need to subtract the total amount paid in the first 11 months from the original purchase amount:

$6,283 - $748 = $5,535

Therefore, the Koslow family would have to pay $5,535 in the 12th month to pay off the balance in full within twelve months.