Question

Choose the correct answers for (a) the total installment price, (b) the carrying charges, and (c) the number of months needed to save the money at the monthly rate to buy the item for its cash price.

a stereo with a cash price of $1,200 at $119.00 per month for 12 months

Answer 1

Answer: A=1428.00

B=228.00

C=11

Answer 2

(a) $1428

(b) $228

(c) 11 months

Explanation:

(a) Total installment price = 119 × 12 = $ 1428

(b) The carrying charges = amount paid - cash price

= 1428 - 1200 = $ 228

(c) No. of needed to save the money = 1200 ÷ 119 = 10.08 ≈ 11 months