Question

John Walters is comparing the cost of credit to the cash price of an item. If John makes a down payment of $160 and pays $35 a month for 24 months, how much more will that amount be than the cash price of $725?

Answer 1

Answer:

The amount is $275 more that the cash price of $725.

Step-by-step explanation:

It is given that John makes a down payment of $160 and pays $35 a month for 24 months.

Down payment = $160

Total amount of installments = $35 × 24 = $840

Total amount of product = Down payment + Total amount of installments

Total amount of product = $160 + $840 = $1000

Cash price = $725

Difference between credit and cash price is

Difference = $1000 - $725 = $275

Therefore the amount is $275 more that the cash price of $725.