Each monthly payment is $ 49.05, and in total Tom paid $ 648.60.
Step-by-step explanation:
Given that Tom buys a DVD player on 12 monthly payments, whose cash price is $ 600, and he pays a 10% deposit and the store charges 9% interest, to determine how much is each payment and the total amount Tom pays for the DVD player the following calculations must be performed:
600 - 600 x 0.1 = 540
540 x 1.09 = 588.6
588.6 / 12 = 49.05
Thus, each monthly payment is $ 49.05, and in total Tom paid $ 648.60.
