Question

Please help me

Answer 1

Tyler wants to buy a super awesome next generation gaming system for $400. He doesn’t have all the money yet, but there are a variety of financing options he could use. He has to pay a percentage of the system right away, and he has to make a few equal monthly payments after the purchase.

https://s3.amazonaws.com/algebranation/testyourself_uploads/upload-20130920-15:31:13/images/4-9.jpg

Which plan would he have to make the smallest monthly payments?

Answer 2

for $400 ?! he wishes !

Answer 3

jajaja

Answer 4

last column, does that stay for an additional payment in dollars for each month ?

Answer 5

??

Answer 6

I don't really get the plans...I would happy to help if someone explained how exactly these plans work.

Answer 7

@mathmale

Answer 8

Dan, as a general principle, the more one puts down as a down payment, the smaller the amount that is owed, and thus, the smaller the monthly payment on the amount owed. Given that, which plan do you think would result in the lowest monthly payment?

Answer 9

I'm afraid the problem is more complicated than that (sorry). My suggestion here was based upon the number of payments being the same; that is NOT the case in this problem. Back to the drawing board!

Answer 10

Let's assume, for the purpose of illustration, that the initial amount spent is just $100 (not $400).

If this person puts 10% down, that would be $10; he'd have $90 more to pay, and if he makes 9 more payments, the monthly payment would be $90/9 = $10.

If 25% down, $75 more to pay, monthly payment would be $75/10 = $7.50.

Please do the same calculations for the other 2 options, and then compare your four results.

Answer 11

50/10=5
80/10=8

Answer 12

Like that?

Answer 13

So now you have four alternatives from which to choose. Which alternative results in the smallest monthly payment?

Answer 14

the 5 one

Answer 15

?

Answer 16

Hope this is clear and undrstandable for you.

As much as I'd like to continue, I need to get off the 'Net very soon. OpenStudy is very addictive for me. Best to you, Daniel. Hasta la vista.

Answer 17

Hasta luego

Answer 18

Muchas gracias por el medal!

Answer 19

De nada.. La medalla