Question

Choose the correct answers for (a) the total installment price, (b) the carrying charges, and (c) the number of months needed to save the money at the monthly rate to buy the item for its cash price. a dinette table with a cash price of $200 at $8.50 down and $11.00 per month for 24 months

Answer 1

Part A:

Given that a dinette table with a cash price of $200 is purchased at $8.50 down and $11.00 per month for 24 months

The total installment price is given by

$P=\ 8.50+\ 11(24) \\ \\ =\ 8.50+\ 264=\ 272.50$



Part B:

The carrying charges is given by the total installation price minus the cash price.

From part a, we obtained that the total installation price is $272.50 and given that the cash price is $200.

Therefore, the carrying charges is given by

$272.50 - $200.00 = $72.00



Part C:

If the money is to be saved at $11 per month to be able to purchase the table at the cash price, the number of months it will take to be able to save $200 at $11 per month is given by

$\frac{\ 200}{\ 11} =18.18\, months$

Therefore, it will take 19 months to save the money at the monthly rate needed to buy the item for its cash price.

Answer 2

Answer:

total installment price = $272.50

Carrying charges = $72.50

19 months needed to save the money.

Step-by-step explanation:

a dinette table with a cash price of $200 at $8.50 down and $11.00 per month for 24 months

(a) Cash price is 8.50, $11.00 per month for 24 months

Total installment price = cash price + 11 for 24 months

= 8.50 + 11* 24

= 8.50 + 264 = 272.50

So total installment price = $272.50

(b) Original price of table = $200

Total installment price = $272.50

Carrying charges = Total installment price - Original price  

= 272.50 - 200- 72.50

Carrying charges = $72.50

(c) monthly rate = $11

Number of months needed to save = original price divide by monthly rate

= $\frac{200}{11} = 18.18$

So, 19 months needed to save the money.