Questions: A consumer makes a 400 down payment on a television that costs 1,570. Which of the following is the number of months it will take to pay off the television with monthly payments of 100? (Assume that no interest is owed.)

A consumer makes a 400 down payment on a television that costs 1,570. Which of the following is the number of months it will take to pay off the television with monthly payments of 100? (Assume that no interest is owed.)

Transcript text: A consumer makes a $\$ 400$ down payment on a television that costs $\$ 1,570$. Which of the following is the number of months it will take to pay off the television with monthly payments of $\$ 100$ ? (Assume that no interest is owed.)

Solution

Solution Steps

Step 1: Calculate the Remaining Balance

The total cost of the television is $\$1570$. A down payment of $\$400$ is made. To find the remaining balance, subtract the down payment from the total cost:

\[ \text{Remaining Balance} = 1570 - 400 = 1170 \]

Step 2: Determine the Number of Months Needed

The monthly payment is $\$100$. To find the number of months needed to pay off the remaining balance, divide the remaining balance by the monthly payment:

\[ \text{Months Needed} = \frac{1170}{100} = 11.7 \]

Since partial month payments are not allowed, round up to the nearest whole number:

\[ \text{Months Needed} = \lceil 11.7 \rceil = 12 \]