Question

Tommy buys a new stereo that sells for $1052.75 plus taxes. At the time of the

purchase the taxes and a $40 deferral charge are paid. The selling price is paid in
12 monthly payments.
A) What is the total amount to be paid at the time of the purchase?
B) What is the amount of each monthly payment?

Answer 1

Answer: See explanation

Explanation:

A. What is the total amount to be paid at the time of the purchase?

This will be the selling price of the stereo with the tax and the deferral. This will be:

= $1052.75 + $40

= $1092.75

B) What is the amount of each monthly payment?

Each monthly payment will be gotten by dividing the total payment to be made by 12. This will be:

= $1092.75 / 12

= $91.06