Mr. Jones purchased a refrigerator for x dollars under an installment plan. The plan requires Mr. Jones to make a 15% down payment and monthly

payments of y dollars over a period of 24 months.

Use the given expressions to determine the finance charge that Mr. Jones paid.

24x - 0.85y

0.85x + 24y

0.15x

15y

24y - 0.85%

0.15x + 24y

(24y

15

0.85%

down payment

number of monthly payments

total amount paid as monthly payments

24y - 0.85x

Explanation:

The finance charge is the difference between the amount paid for the purchase with financing and the amount you would pay if you do not finance the purchase, that is, if you buy it in cash.

The amount paid with financing is the down payment plus all the montly payments. This is:

down payment + number of monly payments * montly payment 15% of x dollars + 24 * y dollars = 0.15x + 24y

The amount that you would pay without financing is the price of the refrigerator:

x

The difference is:

0.15x + 24y - x = 24y - 0.85x