Question

shania bought a $1010 drum set on the installment plan. the installment agreement included a 20% down payment and 36 monthly payments of $26.65 each.
how much is the down payment? $\square$ (round to the nearest cent)
what is the total amount of the monthly payments? $\square$ (round to the nearest cent)
how much will shania pay for the drum set on the installment plan? $\square$ (round to the nearest cent)
what is the finance charge? $\square$ (round to the nearest cent)

Explanation:

Step1: Calculate Down Payment

The down payment is 20% of $1010. So, $1010 * 0.20 = $202.00.

Step2: Calculate Total Monthly Payments

There are 36 monthly payments of $26.65 each. So, 36 * $26.65 = $959.40.

Step3: Calculate Total Installment Payment

Add down payment and total monthly payments: $202.00 + $959.40 = $1161.40.

Step4: Calculate Finance Charge

Subtract original price from total installment payment: $1161.40 - $1010 = $151.40.

Answer:

Down payment: $202.00
Total monthly payments: $959.40
Total installment payment: $1161.40
Finance charge: $151.40