Question

Bryson and his cousins plan to all chip in to get their grandmother a $250
Christmas present. They can afford to put it on layaway with a 5% down
payment and pay $30 a month after that. If payments are due at the
beginning of each month, when should Bryson and his cousins make their
first monthly payment?
O A. July 1
O B. April 1
O C. June 1
O D. May 1

Answer 1

Answer: May 1st

Step-by-step explanation:

Answer 2

They have pay initially the down payment of 5% and the first month's installment.

You should start on May 1, because if you want to get it for her for Christmas.

Option D is correct.

What is monthly payment and down payment?

The monthly payment is the amount paid per month to pay off the loan in the time period of the loan.

Down payment is the initial deposit made by the buyer to the seller when purchasing an expensive item, such as residential property or a car.

According to the question

Bryson and his cousins plan to all chip in to get their grandmother a $250 Christmas present.

They make a down payment of 5% and pay $30 a month after that.

If the payments are due at the beginning of each month, then they have to pay the first month's installment with their down payment.

That means they have pay initially the down payment of 5% and the first month's installment.

Total price = $250

Down payment = $250 x 5% = $12.5

Remaining amount = 250 - 12.5 = 237.5

= $\frac{237.5}{30} =7.91$ ≈ 8 months

You should start on May 1, because if you want to get it for her for Christmas.

May to December is 8 months.

Option D is correct.

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