Question

Timothy wants to buy a television that costs $500 including taxes. 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. What is the percent increase from the original cost of the television using the payment plan?

Answer 1

17%

Explanation:

Timothy's total cost is ...

$150 +6 · $72.50 = $585

The ratio of this price to the original is ...

$585/$500 = 1.17 = 1 +17%

The percentage increase from the original cost is 17%.