Question

Carl wants to buy a television that costs $500, including taxes. To pay for the television, he will use a

payment plan that requires him to make a down payment of $125, and then pay $72.50 each month for 6
months. What is the percent increase from the original cost of the television to the cost of the television
using the payment plan?

A) 6%
B) 12%

C) 58%
D) 89%

Answer 1

9514 1404 393

Answer:

B) 12%

Explanation:

The total cost of Carl's payment plan is ...

$125 + 6×72.40 = $560

The percentage change from the original price is ...

%change = ((new price)/(original price) -1) × 100%

= ($560/$500 -1) × 100% = (1.12 -1)×100%

= 12%

The increase from the original cost is 12%.