Question

21. Tom buys a DVD player on 12 monthly payments. The cash price is $600. He pays

* 10% deposit and the store charges 9% interest.
(a) How much is each payment?
(b) Total amount Tom pays for the DVD player?​

Answer 1

Each monthly payment is $ 49.05, and in total Tom paid $ 648.60.

Explanation:

Given that Tom buys a DVD player on 12 monthly payments, whose cash price is $ 600, and he pays a 10% deposit and the store charges 9% interest, to determine how much is each payment and the total amount Tom pays for the DVD player the following calculations must be performed:

600 - 600 x 0.1 = 540

540 x 1.09 = 588.6

588.6 / 12 = 49.05

Thus, each monthly payment is $ 49.05, and in total Tom paid $ 648.60.