Carl wants to buy a television that costs $500, including taxes. To pay for the television , he will use a payment plan that requires him to make a down payment of $125, and then pay $ 72.50 each month for 6 months. What is the percent increase from the original cost of the television to the cost of the television using the payment plan? Explain.A) 6% B) 12%C) 58%D) 89%
Accepted Solution
A:
Answer:(B) 12%Step-by-step explanation: Original cost of the television = $500Cost using the payment plan = Down payment + EMI's for 6 months = $124 +72.5*6 = $560Percentage increase = [tex]\frac{New cost (using payment plan)-original cost}{original cost}*100[/tex] = [tex]\frac{560-500}{500} *100[/tex] = 60/5 = 12% Hence, the percent increase from the original cost of the television to the cost of television using the payment plan = 12% (C)