Answer: 12% increase
Explanation:
To pay for the Television, he will use a payment plan that requires him to make a down payment of $125, and then pay $72.50 each month for 6 months. This means that the total amount that he would pay in 6 months is
72.5 × 6 = 435
The total amount that he ends up paying for the TV is
435 + 125 = 560
The increase in amount compared to the original price is
560 - 500 = $60
Therefore, the percentage increase
from the original cost of the tv to the cost of the tv using the payment plan is
60/500 × 100 = 12%