Two payment schemes are available for customers in the N'K store. The first scheme includes a downpayment of 20% of the purchase price and 10 monthly payments of 10% each. The second includes a downpayment of 10% and 20 monthly payments of 8% each. If a customer buys a TV for $216, by what percent will he find the first scheme cheaper than the second (approximately)?
(A) 14%
(B) 27%
(C) 30%
(D) 34%
(E) 35%
I could get the OA C) by assuming that the down payment doesn't subtract the capital cost (or purchase price). If we do, the answer would be different. Can anyone please explain?
Here's what i am talking about:
scheme 1:
down payment = $43.20
remaining payment = 216-43.20 = 172.80
10% of this is $17.28
10 months of this payment is 172.80
total payment = 43.20+172.80 = 216 {Alternatively, one can also solve the equation to derive the result that total payment = purchase price!}
scheme 2
down payment = $21.60
remaining payment = 216-21.60 = 194.40
8% of this is $15.52
20 months of this payment is 311.04
total payment = 21.60+311.01 = 332.64
% less => (332.64-216)/332.64 = 35%
Any thoughts please?
maybe i didnt understand the question properly
(A) 14%
(B) 27%
(C) 30%
(D) 34%
(E) 35%
I could get the OA C) by assuming that the down payment doesn't subtract the capital cost (or purchase price). If we do, the answer would be different. Can anyone please explain?
Here's what i am talking about:
scheme 1:
down payment = $43.20
remaining payment = 216-43.20 = 172.80
10% of this is $17.28
10 months of this payment is 172.80
total payment = 43.20+172.80 = 216 {Alternatively, one can also solve the equation to derive the result that total payment = purchase price!}
scheme 2
down payment = $21.60
remaining payment = 216-21.60 = 194.40
8% of this is $15.52
20 months of this payment is 311.04
total payment = 21.60+311.01 = 332.64
% less => (332.64-216)/332.64 = 35%
Any thoughts please?
maybe i didnt understand the question properly
