Question

It is your birthday and you are going to get a new cellphone. The day you buy the phone, you will have to pay the $49 interest fee and a $200 down payment. The remaining balance of the phone will be paid off in 24 equal payments. The total bill is $980, including the interest fee and down payment. Write an equation to solve for p, the required monthly payments

Answer 1

$30.46

Explanation:

Total payment = down payment + interest fee + 24 equal payments

980 = 200 + 49 + 24 equal payments

24 equal payments = 24 * p, as we add p 24 times

980 = 249 + 24p

subtract 249 from both sides to isolate p and its coefficient

731 = 24p

divide both sides by 24 to isolate p

p = 30.46