Chapter 1, Problem 7SAP

To determine

To select: the monthly payment of each 4 months from the given options.

Answer to Problem 7SAP

1. $8.60

Explanation of Solution

Given information:

Subscription cost of four publications is $12.90, $16.00, $18.00, and $21.90 per year.

Initial down payment = Half of the total amount

Remaining amount paid in 4 equal monthly payments

The given options are as follows:

1. $8.60
2. $9.20
3. $9.45
4. $17.20
5. $34.40

Calculation:

Let the total amount be x, and remaining amount to be paid in 4 months be y.

According to the question, the equations will be as follows:

  $\begin{array}{c}x=12.90+16.00+18.00+21.90\\ x=68.80\end{array}$

  $y=\frac{\left(\frac{1}{2}x\right)}{4}$

Substitute the value of x in the above equation and simplify as follows:

  $\begin{array}{c}y=\frac{\left(\frac{1}{2}\left(68.80\right)\right)}{4}\\ y=\frac{34.40}{4}\\ =8.60\end{array}$

The payment for each 4 months is $8.60. Thus, option A is correct.