Kareem purchased a leather jacket for $800 with his new credit card. He budgeted $50 a month to pay toward the debt. When he rea
d the fine print on the credit card statement, he saw that for each month he owed a balance, a finance charge of $17.50 would be added. If Kareem pays $50 per month, how much money will the jacket actually cost?
Firstly, if he is paying 50 per month, we need to know the number of months it would take him to finish paying the money. Hence that would be 800/50 = 16 months
Now we know there is a surcharge of 17.5 for each month he owes a balance. The total balance he is to pay is thus 16 * 17.5 = 280
The total cost of the jacket is thus 800 + 280 = 1080
