6
QuizMultiple Choice

Understanding Financing — Quiz

Question 6 • Financial Algebra/Mathematics

Cory is buying a new home theater for his apartment. The system costs $⁢3,800 , and he can take it home if he puts $⁢1,000 down and makes 6 interest-free payments over 6 months. How much will Cory have to pay with each payment?

Answer
A
800 point 0 0 dollars
B
105 point 5 5 dollars
C
466 point 6 6 dollars
D
633 point 3 3 dollars

Explanation

Subtract the $1,000 down payment from the $3,800 total cost: $3,800 − $1,000 = $2,800 remaining. Divide that balance equally among 6 interest-free payments: $2,800 ÷ 6 = $466.67 per payment (to the nearest cent). This matches choice C, $466.66 dollars, allowing for rounding.

AI-written and checked against the verified answer.

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