Question

Alicia is buying a new mountain bike which will cost her $1,250. She is being offered a payment plan if she does not want to pay the full amount at the time of purchase. The plan requires $350 up front and $200 each month for six months. What is the percentage increase from the original price to the payment plan price?.

Answer 1

The correct statement is that the percentage increase from the original price to the payment plan price will be of 24 percent for Alicia's purchase of a new mountain bike.

The calculation of the increase in percentage can be done by division of the changed price with the original price and subtracting the outcome by 100.

Calculation of increase in price

The original price for full payment was $1250. Payment plan price offers similar plan at the down payment of $350 and $200 for the next 6 months. Now the revised price will be,

$\rm Revised\ Price= 350 + (200\ x\ 6)\\\\\rm Revised\ Price=\ 1550$

Now the increase in price can be calculated by applying the obtained and available values to the following formula,

$\rm Increased\ Price\ Percentage= \rm [\dfrac{Revised\ Price}{Orginal\ Price}\ x\ 100]-100\\\\\rm Increased\ Price\ Percentage= \rm [\dfrac{1550}{1250}\ x\ 100] -100\\\\\rm Increased\ Price\ Percentage= 24$

So, the price is increased by 24 percent in the payment plan.

Hence, the correct statement is that the percentage increase from the original price to the payment plan price will be of 24 percent for Alicia's purchase of a new mountain bike.

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