Question

Emily wants to buy a car. She pays a deposit equal to 20% of the cost of the car. She will pay the balance in 8 equal payments of $5460 each month. How much does the car cost

Answer 1

Answer: the cost of the car is $54600

Step-by-step explanation:

Let x represent the cost of the car.

She pays a deposit equal to 20% of the cost of the car. This means that the amount of money that she paid as deposit would be

20/100 × x = 0.2 × x = 0.2x

The remaining balance would be

x - 0.2x = 0.8x

She will pay the balance in 8 equal payments of $5460 each month. This means that

0.8x/8 = 5460

0.1x = 5460

Dividing the left hand side and the right hand side of the equation by 0.1, it becomes

0.1x/0.1 = 5460/0.1

x = 54600