62.2k views
0 votes
Pick is below this is not a TEST or QUIZ its a homework

Pick is below this is not a TEST or QUIZ its a homework-example-1

1 Answer

5 votes

ANSWER

Option 2

Step-by-step explanation

The cost of the Playstation is $450.

OPTION 1

6 months at 3% interest.

We have to split the amount into 6 and then find 3% of that and add it to the monthly price.

That is:

450 / 6 = $75

Amount per month is therefore:


\begin{gathered} A\text{ = }(3)/(100)\cdot75\text{ + 75} \\ A\text{ = }2.25\text{ + 75 = \$77.25} \end{gathered}

OPTION 2

12 months at 5% interest.

Split into 12 instead of 6 and use 5%.

We have:

450/12 = $37.5


A\text{ = }(5)/(100)\cdot37.5\text{ + 37.5 = 1.875 + 37.5 = \$39.}38

Therefore, option 2 has the smallest monthly payment.

User Ayman El Temsahi
by
8.3k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.