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John bought a dryer.

After making a $200 down payment, the remaining balance was financed using an installment loan.
He makes 12 equal credit card payments of $59.81 to pay off the loan. The discount appliance store charges $1.50 for every payment made by credit card. John also had to pay late fees in the amount of $25 three different times.
Explain with all the steps

User Vetemi
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1 Answer

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Answer: Let's break down the steps to calculate the total cost of the dryer, including the down payment, installment loan payments, credit card fees, and late fees.

Step 1: Calculate the total cost of the dryer before any payments or fees.

Let's assume the total cost of the dryer is "T" dollars.

Step 2: Subtract the down payment from the total cost.

The remaining balance to be financed using the installment loan is the total cost (T) minus the down payment of $200.

Remaining balance = T - $200

Step 3: Calculate the total cost of the installment loan payments.

John makes 12 equal credit card payments of $59.81 each. However, each payment incurs an additional fee of $1.50, so the total installment loan payments can be calculated as follows:

Total installment loan payments = 12 * ($59.81 + $1.50)

Step 4: Calculate the total credit card fees.

John makes 12 payments, and each payment incurs a fee of $1.50. So, the total credit card fees can be calculated as follows:

Total credit card fees = 12 * $1.50

Step 5: Calculate the total late fees.

John had to pay late fees of $25 three different times, so the total late fees can be calculated as follows:

Total late fees = 3 * $25

Step 6: Calculate the total cost.

The total cost can be calculated by adding up all the components:

Total cost = Remaining balance + Total installment loan payments + Total credit card fees + Total late fees

Total cost = (T - $200) + [12 * ($59.81 + $1.50)] + [12 * $1.50] + [3 * $25]

Step 7: Given information about the installment loan payments and credit card fees.

John makes 12 equal credit card payments of $59.81 each, but the information does not provide the interest rate or loan duration. Therefore, we cannot directly calculate the total installment loan payments without more details about the loan.

Step 8: Final step.

Without additional information about the interest rate and loan duration for the installment loan, we cannot provide the exact total cost of the dryer.

If you have more details about the installment loan, interest rate, and loan duration, we can help you calculate the total cost. Otherwise, we can only provide the breakdown of the components as shown in steps 1 to 6.

User Psychevic
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