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

Rationale

It will take 12 months to pay off the television with monthly payments of $100.

After making a down payment of $400, the consumer still needs to pay off $1,170 ($1,570 - $400). With monthly payments of $100, it will take the consumer 11 months to pay off $1,100 and an additional month to pay off the remaining $70.

A (16) YOUR ANSWER

This is incorrect because it suggests that the consumer would be paying a total of $1,600 ($400 down payment + 16 x $100 monthly payments), which is more than the cost of the television.

C (11) YOUR ANSWER

This is incorrect because after 11 months of $100 payments, the consumer would have only paid off $1,500 in total ($400 down payment + 11 x $100 monthly payments), leaving a balance of $70.

D (15) YOUR ANSWER

This is incorrect because it suggests that the consumer would be paying a total of $1,900 ($400 down payment + 15 x $100 monthly payments), which is more than the cost of the television.

Conclusion

In order to pay off the television, the consumer must cover the total cost of $1,570. After a $400 down payment, there is a balance of $1,170. By making monthly payments of $100, the consumer will need 11 months to pay off $1,100 and an additional month to cover the remaining $70. Therefore, it will take a total of 12 months to fully pay off the television, assuming no interest is charged.

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

It will take 12 months to pay off the television with monthly payments of $100.

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