select the correct answer. mary is planning to buy a mobile phone that costs $500. a salesperson at the…

select the correct answer. mary is planning to buy a mobile phone that costs $500. a salesperson at the store informs her about four different installment plans that she can choose from. plan a: a down payment of $50 and monthly payments of $40 for 12 months plan b: a down payment of $100 and monthly payments of $80 for 6 months plan c: no down payment and monthly payments of $60 for 12 months plan d: no down payment and monthly payments of $100 for 6 months which plan will have the highest finance charge? a. plan a b. plan b c. plan c d. plan d

select the correct answer. mary is planning to buy a mobile phone that costs $500. a salesperson at the store informs her about four different installment plans that she can choose from. plan a: a down payment of $50 and monthly payments of $40 for 12 months plan b: a down payment of $100 and monthly payments of $80 for 6 months plan c: no down payment and monthly payments of $60 for 12 months plan d: no down payment and monthly payments of $100 for 6 months which plan will have the highest finance charge? a. plan a b. plan b c. plan c d. plan d

Answer

Explanation:

Step1: Calculate total cost for plan A

Total cost = Down - payment+ (Monthly - payment×Number of months). For plan A, down - payment = 50, monthly payment = 40, and number of months = 12. So total cost = 50+(40×12)=50 + 480=530.

Step2: Calculate total cost for plan B

For plan B, down - payment = 100, monthly payment = 80, and number of months = 6. So total cost = 100+(80×6)=100 + 480=580.

Step3: Calculate total cost for plan C

For plan C, no down - payment, monthly payment = 60, and number of months = 12. So total cost = 60×12 = 720.

Step4: Calculate total cost for plan D

For plan D, no down - payment, monthly payment = 100, and number of months = 6. So total cost = 100×6=600.

Step5: Compare total costs

720 (plan C)>600 (plan D)>580 (plan B)>530 (plan A).

Answer:

C. plan C