Answer: The total amount paid ($5500) will be the same for both dealers after 20 months.
Step-by-step explanation:
Hi, to solve this problem we have to write an equation using the information given:
Down payment: $2500
Monthly payment: $150
Down payment: $3000
Monthly payment: $125
So, for both dealers, we have to multiply the monthly payment by the number of months (x ) and add the down payment.
Mathematically speaking
- Dealer 1 amount = $2500+ $150x
- Dealer 2 amount = $3000 +$125x
Then, we equal both equations because the total amount has to be the same:
$2500 +$150x =$3000 +$125x
Solving:
$150x - $125x = $3000-$2500
$25x = $500
x = $500/ $25 =20 months
The total amount paid will be the same for both dealers after 20 months.
To calculate the amount simply replace "x" for the 20 months in any equation.
$2500 +$150 x20m =
$2500 + $3000 = $5500