Question

Choose the correct answers for (a) the total installment price, (b) the carrying charges, and (c) the number of months needed to save the money at the monthly rate to buy the item for its cash price.
Dining room furniture with a cash price of $1,900 at $100.00 down and $90.00 per month for 24 months.

a. $_____

b. $ _____

c._____

Answer 1

(a) the total installment price
100+90×24=2,260

(b) the carrying charge
2,260−1,900=360

(c) the number of months needed
1,900÷90=21.11 or 22 months

Answer 2

Answer: a.$2,160

b. $360

c. 22 months

Step to step explanation:-

Given: Dining room furniture with a cash price of $1,900 at $100.00 down and $90.00 per month for 24 months.

The total installment price

=90×24=2160

Now, the total cost of dinning room furniture=$100+$2160=$2260

Then the carrying charge

=Total cost- cash price =$2,260−$1,900=$360

To find the number of months needed  to save the money at the monthly rate to buy the item for its cash price, we divide the cash price by 90, we get

$\frac{1900}{90}=21.11..\approx22\ months$