Question

The owner offers a payment plan where the total cost of the

mountain bike is paid in 3 equal monthly payments. Determine the amount
of each monthly payment.

Answer 1

$131.85

Explanation:

First, we need to find the net price (after discount and tax) It's a 15% discount, so just find 85% (100-15=85) of the original price. You'll get $373.15.

For tax, multiply by 1.06, since it's a 6% tax (1+.06). You'll get $395.539.

You're paying over 3 months time, so to find payment each month just divide by 3.

395.539/3 = 131.8463333

Round to 131.85

Your answer is $131.85 dollars per month