Solution-
The price of the snow thrower = $1980
He must pay a 10% down-payment and the rest at a $116 monthly payment for 18 months.
A. How much is the down payment
Down payment amount is, 10% of $1980, i.e
[tex]=1980\times \dfrac{10}{100}=\dfrac{1980}{10}=\$198[/tex]
B. What is the total amount of the monthly payments
A monthly payment of $116 for 18 months, i.e
[tex]=116\times 18=\$2088[/tex]
C. How much did Jean pay for the snow thrower on the installment plan
It is the sum of down-payment and total monthly payments, i.e
[tex]=198+2088=\$2286[/tex]
D. What is the total finance charge
It the difference between the original price and the amount paid by Jean, i.e
[tex]=2286-1980=\$306[/tex]
E. If Jean models her payment plan as an arithmetic sequence, give the first term a1 and the common ratio d
As he paid the down-payment of $198 and then a constant monthly payment of $116, so
The first term = 198
common difference = 116
The A.P. series will be, 198, 314, 430, 546, 662,.................., 2286