Question

Arnold purchased a $1300 set of golf clubs on a nine-month layaway plan and had to pay a monthly payment of $158.89. What is the fee charged for the layaway plan?

Answer 1

Answer:

$130.01 is the fee charged.

Step-by-step explanation:

We know that Arnold purchased the set of gold for $1300. However, he has to pay $158.89 per month for 9 months, the final cost would be

$158.89(9)=1430.01$

So, the difference with the initial amount would be:

$1430.01-1300=130.01$

Therefore, the layaway plan is charging a fee of $130.01.