Question

Calculate (a) the total installment price, (b) the carrying charges, and (c) the number of months needed to save the money at the monthly rate to buy the item below for its cash price (remember to round up). A bicycle with a cash price of $500, offered on the installment plan for $28 per month for 24 months.

Answer 1

a) The total installment price is ($28/mo)*(24 mo) = $672.00

b) The carrying charges are $672.00 -500.00 = $172.00

c) The number of months of saving required is 500/28 ≈ 18.

Answer 2

Hey, mate and thanks for letting me help.
A is ($28/mo)*(24 mo) = $672.00

B is $672.00 -500.00 = $172.00

C 500/28 ≈ 18.