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On a purchase of $120, a store offered a payment plan consisting of a

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New post 25 Aug 2017, 00:28
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On a purchase of $120, a store offered a payment plan consisting of a $20 down payment and 12 monthly payments of $10 each. what percent of the purchase price, to the nearest tenth of a percent, did the customer pay in interest by using this plan?

A. 16.7%
B. 30%
C. 75.8%
D. 106.7%
E. 107.5%

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Re: On a purchase of $120, a store offered a payment plan consisting of a  [#permalink]

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New post 25 Aug 2017, 00:34
Bunuel wrote:
On a purchase of $120, a store offered a payment plan consisting of a $20 down payment and 12 monthly payments of $10 each. what percent of the purchase price, to the nearest tenth of a percent, did the customer pay in interest by using this plan?

A. 16.7%
B. 30%
C. 75.8%
D. 106.7%
E. 107.5%


Actual price = 120
Payment with interest = 20+12*10 = 140
Interest = 140-120 = 20
% of interest of the purchase price = 20/120 = 1/6 = 16.67%
A
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On a purchase of $120, a store offered a payment plan consisting of a  [#permalink]

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New post 25 Aug 2017, 10:52
Bunuel wrote:
On a purchase of $120, a store offered a payment plan consisting of a $20 down payment and 12 monthly payments of $10 each. what percent of the purchase price, to the nearest tenth of a percent, did the customer pay in interest by using this plan?

A. 16.7%
B. 30%
C. 75.8%
D. 106.7%
E. 107.5%


- Regular price : $120 and total purchase price with installment : $20 + ($12*10) = $140.
- Thus, we pay $20 more on interest.
- Percentage of this interest : \(\frac{$20}{$140} * 100{%}\) = \(\frac{100{%}}{7}\) = \(16,7{%}\).

A.
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Re: On a purchase of $120, a store offered a payment plan consisting of a  [#permalink]

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New post 25 Aug 2017, 11:58
The store offered a payment plan consisting of a $20 down payment and 12 monthly payments of $10,
the total payment made for the purchase is\(20 + 12 * 10 = 20 + 120 = 140$\)

Therefore he would have paid \(140 - 120 or 20\)$ in interest

Since, we need to find what percent of the purchase price did the customer pay in interest,
it must be \(\frac{20}{120} * 100 = \frac{1}{6} * 100 = 16.7\)%(Option A)
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On a purchase of $120, a store offered a payment plan consisting of a  [#permalink]

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New post 25 Aug 2017, 12:18
Bunuel wrote:
On a purchase of $120, a store offered a payment plan consisting of a $20 down payment and 12 monthly payments of $10 each. what percent of the purchase price, to the nearest tenth of a percent, did the customer pay in interest by using this plan?

A. 16.7%
B. 30%
C. 75.8%
D. 106.7%
E. 107.5%

Subtract the down payment. Find the difference between original amount owed and final amount paid. That's interest. Finally, find percentage required.

Purchase price = $120

Less the $20 down payment =
120 - 20 = $100 to pay off at beginning

Payment total at end is $10/month * 12 months = $120

She had $100 to pay at beginning. She paid $120 by the end.

The difference is interest: $120 - 100 = $20 in interest

$20 is what percent of purchase price $120?

\(\frac{20}{120}\) = \(\frac{1}{6}\) * 100 = 16.66... = 16.7%

Answer A
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Re: On a purchase of $120, a store offered a payment plan consisting of a  [#permalink]

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New post 26 Aug 2017, 09:39
Bunuel wrote:
On a purchase of $120, a store offered a payment plan consisting of a $20 down payment and 12 monthly payments of $10 each. what percent of the purchase price, to the nearest tenth of a percent, did the customer pay in interest by using this plan?

A. 16.7%
B. 30%
C. 75.8%
D. 106.7%
E. 107.5%


Price of item = 120 $
Total cost to customer = 20$ + 10$*12 = 140$
Interest paid over 12 monthly payments = 20$
Percentage interest = 20/120 * 100%
= 16.67%

Answer A
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Re: On a purchase of $120, a store offered a payment plan consisting of a  [#permalink]

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New post 29 Aug 2017, 17:23
Bunuel wrote:
On a purchase of $120, a store offered a payment plan consisting of a $20 down payment and 12 monthly payments of $10 each. what percent of the purchase price, to the nearest tenth of a percent, did the customer pay in interest by using this plan?

A. 16.7%
B. 30%
C. 75.8%
D. 106.7%
E. 107.5%


When the customer used the payment plan, he or she paid 20 + 10 x 12 = 140 dollars, which is 20 dollars more than the purchase price. That is, the interest is 20 dollars using the payment plan.

Thus, the interest paid is 20/120 = 1/6 = 16.7%.

Answer: A
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Re: On a purchase of $120, a store offered a payment plan consisting of a   [#permalink] 29 Aug 2017, 17:23
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