Question

Kenya plans to make a down payment plus monthly payments in order to buy a motorcycle. At one dealer she would pay $2,500 down and $150 each month. At another dealer, she would pay $3000 down and $125 each month. After how many months would the total amount paid be the same for both dealers? What would that amount be?

Answer 1

2500 + 150m = 3000 + 125m; m = 20

2500 + 150(20) = 5500 and 3000 + 125(20) = 5500

After 20 months, the total amount paid to both dealers will be $5500.