Question

Kelly reads an advertisement for a zero finance charge installment planwhen a new riding lawn mower is paid in full within 8 months. She goes tothe store offering the promotion and finds out that the mowers are $1,017.The minimum payment that must be made each month is $54. If Kelly onlypays the minimum payment for 7 months, how much must she pay on theeighth payment to avoid finance charges? Do not include a dollar sign inyour answer.

Answer 1

Given:

Cost of mowers are $1017

$\begin{gathered} \text{Cost paid in 7 months=7}\times54 \\ =378 \end{gathered}$$\begin{gathered} \text{Amount to be paid on 8th month=1017-378} \\ =\text{ \ 639} \end{gathered}$

Amount to be paid on 8th month is 639