Question 8 • 26-27 Ignite Technical Math-Financial Math - MA2007
Cindy is buying a car from Robert for $4,500. Robert has agreed to accept a down payment of $500 and 16 consecutive monthly payments of $250 from Cindy to pay the car off. In agreement, Cindy writes up the following contract: “I agree to pay Robert a down payment of $500 in addition to 16 payments of $225 in exchange for this car.” Robert does not sign the contract, saying there are mistakes Cindy should correct. Which of the following is not a correction Cindy should make??
Answer
A
Cindy needs to change the monthly payment amount to $250 as agreed.
B
Cindy needs to include the word “monthly” to describe the frequency of her payment.
C
Cindy needs to change the number of payments to 17 to include the down payment.
D
Cindy needs to include Robert’s last name and her full name.
Explanation
The agreement is for a $500 down payment plus 16 monthly payments of $250. The down payment is separate from those 16 payments, so Cindy should not change the number of payments to 17. She should correct the $225 amount, specify that payments are monthly, and include both parties’ full names.
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