Question 133149This question is from textbook Fundamentals of Algebric Modeling
: A dishwasher costs $975. You pay $150 down and finance the rest at 10.5% APR for 24 months. How much more did you pay for the dishwasher by financing it instead of paying cash?
This question is from textbook Fundamentals of Algebric Modeling
Answer by nycsharkman(136)   (Show Source):
You can put this solution on YOUR website! A dishwasher costs $975. You pay $150 down and finance the rest at 10.5% APR for 24 months. How much more did you pay for the dishwasher by financing it instead of paying cash?
I don't why you titled this question "geometric formula" when this is financial word problem not a geometry word problem.
Total cost of dishwasher = $975
If you put down $150, then what you have left over is $975 - $150 = $825.
APR = Annual Percentage Rate
If you decide to accept the APR deal, then $825 times 0.105 = $86.625
Now, multiply $86.625 by 24 months = $2079
When you financed the dishwasher, how much more did you pay instead of paying the entire $975 from the start?
This is what the question is asking you.
To find how much more you paid, subtract $975 from $2079.
So, $2079 - $975 = $1104 MORE.
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So, to finance this dishwasher is not a good deal.
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