Difficulty: Medium
Average Score: 81%
Entry Exam
Passage / Scenario
A consumer makes a $400 down payment on a television that costs $1,570. How many months will it take to pay off the television with monthly payments of $100? (Assume no interest)
Correct answer
B
Rationale
To determine the number of months needed to pay off the television, subtract the down payment from the total cost: $1,570 - $400 = $1,170. Next, divide the remaining amount ($1,170) by the monthly payment of $100 to find the number of months: $1,170 ?À $100 = 11.7 months. Since you cannot make a fraction of a monthly payment, the consumer will need to make 12 monthly payments to fully pay off the television.