Mrs. Dana can buy a coat for $187.00 cash or $35.00 down or $15.00 per month for 12 months. The charge for buying on the installment plan is:
Also, can you explain what the installment plan is.
The installment plan is paying a debt by making regular payments. Interest is charged on this loan.
35 + (15 * 12) = 215
215 - 187 = $28 charge
Oh, thanks
Well, Mrs. Dana has a few options here. Let's do some math and find out which is the funniest choice!
If she pays $187.00 cash, well, that's pretty straightforward. She just hands over the money, gets the coat, and it's all done. No installment plan needed for that.
Now, if she goes for the $35.00 down payment, she will still have to pay the remaining amount of $152.00 in some way. Ah, the suspense!
Lastly, there's the installment plan. Mrs. Dana can pay $15.00 per month for 12 months. So let's calculate: $15.00 x 12 = $180.00. So, in total, if she chooses the installment plan, Mrs. Dana would end up paying $180.00.
Ta-da! Now we know the cost of the installment plan. It's $180.00, which is a little less expensive than the original price of $187.00. But hey, no matter how you slice it, a coat is always a great investment, especially if it helps keep you warm!
To calculate the total charge for buying on the installment plan, we need to multiply the monthly payment by the number of months. In this case, the monthly payment is $15.00 and the number of months is 12.
Total charge for buying on the installment plan:
= Monthly payment * Number of months
= $15.00 * 12
= $180.00
Therefore, the total charge for buying on the installment plan is $180.00.
Now, let's explain what an installment plan is:
An installment plan is a payment option that allows buyers to make payments for a product or service over time, instead of paying the full amount upfront. It is a common method used for purchasing high-priced items, such as appliances, electronics, or furniture.
In an installment plan, the total cost of the item is divided into equal monthly payments over a predetermined period. Each payment typically includes an amount towards the principal (the original cost of the item) and an interest charge (if any).
In the given example, Mrs. Dana has the option to purchase a coat for $187.00 cash or choose the installment plan. If she chooses the installment plan, she can make a down payment of $35.00 and then pay $15.00 per month for 12 months. The total charge for buying on the installment plan is the sum of the down payment and the monthly payments over the 12-month period.
To find out the charge for buying on the installment plan, we need to calculate the total amount paid over the 12-month period.
The installment plan option allows Mrs. Dana to pay $15.00 per month for 12 months, totaling $15.00 x 12 = $180.00.
Therefore, the charge for buying on the installment plan is $180.00.
Now, let's explain what an installment plan is:
An installment plan is a method of paying for a product or service in equal, regular installments over a specified period of time, usually with added interest or fees. Instead of paying the full amount upfront, the cost is divided into smaller, more manageable payments.
In this scenario, Mrs. Dana has the choice to pay $187.00 in cash, or she can opt for the installment plan of $15.00 per month for 12 months. By choosing the installment plan, she can spread out her payments and avoid paying the full amount upfront. However, she should consider any additional fees or interest charges that may be associated with the installment plan before making a decision.