Question

Carl wants to buy a television that costs $745, including taxes. To pay for the television, he will use a payment plan that requires him to make a down payment of $120, and then pay $89.30 each month for 8 months. What is the percent increase from the original cost of the television to the cost of the television using the payment plan? *

Answer 1

12%

Explanation:

We are trying to find the percent increase from the original cost to the payment plan cost. To do that, we need to first figure out how much the payment plan would cost in total.

Lets solve for the cost of the payment plan:

$120 + $89.30(8) = $834.40

Next, use the percent increase formula as shown below:

`x=(New-Original)/(Original) (100)`

Plug in the values:

1)
`x=(834.40-745)/(745) (100)`

2)
`x=.12(100)`

3)
`x=12`

Our answer is 12%.