Question

Frank wants to buy an entertainment system that costs $500, including taxes. To pay for the entertainment system, he will use a payment plan the 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 entertainment system to the cost of the entertainment system using the payment plan?

Answer 1

The percent increase from the original cost of the entertainment system to the cost of the entertainment system using the payment plan is 12%.

Step-by-step explanation:

• The original cost of entertainment system = $500
• The cost using payment plan= $125+ ($72.50$\times$ 6)
• cost by payment plan ⇒ 125+ 435 = $560

Percentage increase = (higher value - lower value/ lower value) $\times$ 100

⇒ ((560-500)/500) $\times$ 100

⇒ (60/500) $\times$ 100

⇒ 0.12 $\times$ 100

⇒ 12%