Question

martin dennis purchased a wide screen television for $2170. he made a down payment of 20% and paid the balance over 20 months. the finance charge was 5% of the amount financed. find the down payment, the installment price of the television, and the monthly payment.

part 1 of 3
the down payment on the television was $

Explanation:

Calculate the down payment

Using the Simple Interest knowledge point

$$ \text{Down Payment} = \$2170 \times 20\% = \$2170 \times 0.20 = \$434 $$

Calculate the amount financed

Using the Simple Interest knowledge point

$$ \text{Amount Financed} = \$2170 - \$434 = \$1736 $$

Calculate the finance charge

Using the Simple Interest knowledge point

$$ \text{Finance Charge} = \$1736 \times 5\% = \$1736 \times 0.05 = \$86.80 $$

Calculate the installment price

Using the Simple Interest knowledge point

$$ \text{Installment Price} = \text{Down Payment} + \text{Amount Financed} + \text{Finance Charge} = \$434 + \$1736 + \$86.80 = \$2256.80 $$

Calculate the monthly payment

Using the Simple Interest knowledge point

$$ \text{Monthly Payment} = \frac{\text{Amount Financed} + \text{Finance Charge}}{20} = \frac{\$1736 + \$86.80}{20} = \frac{\$1822.80}{20} = \$91.14 $$

Answer:

Martin Dennis purchased a wide screen television for $2170. He made a down payment of 20% and paid the balance over 20 months. The finance charge was 5% of the amount financed. Find the down payment, the installment price of the television, and the monthly payment.

The down payment on the television was $<blank>434</blank>.