Original price: $598.00. 25% off original price 8% tax applied after discount Part A: The owner offers a payment plan where the total cost of the computer is paid in 6 equal monthly payments. -Determine the amount of each monthly payment. -Show your work or explanation in the space provided
All righty then ... show your work or explanation
Start with the original price 598.00
Gonna be discounted 25% so how much is that? 598.00 x 0.25 = 149.50
What will the price be after reducing it by 149.50? 598.00 – 149.50 = 448.50
Wait, we're not done. Uncle gets 8% tax. How much? 448.50 x 0.08 = 35.88
So add that tax to the price. Sigh, always tax. 448.50 + 35.88 = 484.38
Finally, we got to the bottom line, 484.38
We get to pay it off over six months, though.
Each payment will be a sixth of the total. 484.38 x 1/6 = 80.73
The payment each month is $80.73.
Welcome to the world of high finance.