Question

Jean bought a $1,980 snow thrower on the installment plan. The installment agreement included a 10% down payment and 18 monthly payments of $116 each. A. How much is the down payment? B. What is the total amount of the monthly payments? C. How much did Jean pay for the snow thrower on the installment plan? D. What is the total finance charge? E. If Jean models her payment plan as an arithmetic sequence, give the first term a1 and the common ratio d

Answer 1

Solution-

The price of the snow thrower = $1980

He must pay a 10% down-payment and the rest at a $116 monthly payment for 18 months.

A. How much is the down payment

Down payment amount is, 10% of $1980, i.e

$=1980\times \dfrac{10}{100}=\dfrac{1980}{10}=\ 198$

B. What is the total amount of the monthly payments

A monthly payment of $116 for 18 months, i.e

$=116\times 18=\ 2088$

C. How much did Jean pay for the snow thrower on the installment plan

It is the sum of down-payment and total monthly payments, i.e

$=198+2088=\ 2286$

D. What is the total finance charge

It the difference between the original price and the amount paid by Jean, i.e

$=2286-1980=\ 306$

E. If Jean models her payment plan as an arithmetic sequence, give the first term a1 and the common ratio d

As he paid the down-payment of $198 and then a constant monthly payment of $116, so

The first term = 198

common difference = 116

The A.P. series will be, 198, 314, 430, 546, 662,.................., 2286