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27 November, 08:38

Rhonda plans to buy an $85 Father's Day present for her father, and the holiday falls on the third Sunday of June. She can afford to put it on layaway with a 20% down payment and $8 a month after that. If payments are due at the beginning of each month, when should Rhonda make her first monthly payment?

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  1. 27 November, 11:56
    0
    October 1

    Explanation:

    Layaways are like reverse credit card shopping. In a layaway the customer pays for the product first (in installments) and then they can take it home.

    Total price = $85

    down payment = $85 x 20% = $17

    remaining amount = $68 / $8 = 8.5 ≈ 9 monthly payments

    Rhonda should start to make her first monthly payment in October 1. Her last payment will be due in June.
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