Question

You buy a guitar from the local music store. It regularly sells for $670 but is on sale for 10% off. You pay 8% sales tax. You buy it on an installment plan and pay 15% of the total cost with taxes as a down payment. Your monthly is $58 per month for 1 year. a. What is the discount? 0:05:00 b. What is the sales price? c. What is the sales tax? d. What is the total cost of the guitar? e. What is the downpayment? f. What is the total of the monthly payments? g. What is the total you will pay for the guitar on this plan? h. What is the finance charge?

Answer 1

Let's begin by listing out the information given to us:

Guitar price (P) = $670, discount (d) = 10%, sales tax (s) = 8%

It is bought on a one year installment plan; 15% of price upfront + taxes

a.

The discount is 10%

The discounted price is given by the product of the guitar price by dicount =

discount = $670 & 10% = 670 * 0.01 = $67

b.

The sales price is given by the difference between the guitar price minus the discount

`\begin{gathered} SalesPrice=price-(price\cdot discount)=P-(P\cdot d) \\ SalesPrice=670-(670\cdot(10)/(100))=670-67=603 \\ SalesPrice=\text{ \$603} \end{gathered}`