Question

calculate the total installment price, carrying charges, and number of months needed to save the money at the monthly rate to buy a computer with a cash price of \\$750.00, offered on the installment plan for \\$39.00 per month for 24 months for its cash price (remember to round up).

installment price \\$
charges \\$
months

Explanation:

Calculate total installment price

We find the total installment price by multiplying the monthly payment by the number of months.
Using the Installment Loans knowledge point:

$$ \text{Installment Price} = \$39.00 \times 24 = \$936.00 $$

Calculate carrying charges

The carrying charges (or finance charges) are the difference between the total installment price and the cash price.
Using the Installment Loans knowledge point:

$$ \text{Carrying Charges} = \text{Installment Price} - \text{Cash Price} $$

$$ \text{Carrying Charges} = \$936.00 - \$750.00 = \$186.00 $$

Calculate months to save cash price

We find the number of months needed to save the cash price of \$750.00 at the monthly rate of \$39.00.

$$ \text{Months} = \frac{\text{Cash Price}}{\text{Monthly Rate}} = \frac{750}{39} \approx 19.23 $$

Rounding up to the next whole month as instructed:

$$ \text{Months} = 20 $$

Answer:

Calculate the total installment price, carrying charges, and number of months needed to save the money at the monthly rate to buy a computer with a cash price of $750.00, offered on the installment plan for $39.00 per month for 24 months for its cash price (remember to round up).

installment price $ <blank>936.00</blank>
charges $ <blank>186.00</blank>
<blank>20</blank> months