Question

Carl 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 to the cost of the television using the payment plan? Explain.
A) 6%
B) 12%
C) 58%
D) 89%

Answer 1

Answer:

(B) 12%

Step-by-step explanation:

Original cost of the television = $500

Cost using the payment plan = Down payment + EMI's for 6 months

                                                  = $124 +72.5*6

                                                  = $560

Percentage increase = $\frac{New cost (using payment plan)-original cost}{original cost}*100$

                                 = $\frac{560-500}{500} *100$

                                 =  60/5

                                 = 12%

Hence, the percent increase from the original cost of the television to the cost of television using the payment plan = 12% (C)