Let's start by finding out the price of the item if paid in full immediately. We know that the total paid in the installment plan is 20% more than this price, so the price would be $200 / 1.20 = $<<200/1.20=166.67>>166.67.
Now we need to find out how much each installment payment will be. We divide $166.67 by 5 (the number of payments) to get $166.67 / 5 = $<<166.67/5=33.33>>33.33.
Therefore, each installment payment will be $33.33, rounded to the nearest whole number, which is $<<33.33=33>>33.
The correct answer is not among the available options.
Suppose that an installment plan calls for five payments to be made. The total paid in this plan is 20% more than the price would be if paid in full immediately. The price of the item is $200. How much will each installment payment be?
A.
$48
B.
$240
C.
$40
D.
$52
1 answer
2 answers