Kareem purchased a leather jacket for $800 with his new credit card. He budgeted $50 a month to pay toward the debt. When he read the fine print on the credit card statement, he saw that for each month he owed a balance, a finance charge of $17.50 would be added. If Kareem pays $50 per month, how much money will the jacket actually cost?

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Mathematics

4 July, 20:28

Kareem purchased a leather jacket for $800 with his new credit card. He budgeted $50 a month to pay toward the debt. When he read the fine print on the credit card statement, he saw that for each month he owed a balance, a finance charge of $17.50 would be added. If Kareem pays $50 per month, how much money will the jacket actually cost?

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Edwin Peck · Answer 1

1080

Step-by-step explanation:

Firstly, if he is paying 50 per month, we need to know the number of months it would take him to finish paying the money. Hence that would be 800/50 = 16 months

Now we know there is a surcharge of 17.5 for each month he owes a balance. The total balance he is to pay is thus 16 * 17.5 = 280

The total cost of the jacket is thus 800 + 280 = 1080