Rhonda plans to buy an $85 Father's Day present for her father, and the holiday falls on the third Sunday of June. She can afford to put it on layaway with a 20% down payment and $8 a month after that. If payments are due at the beginning of each month, when should Rhonda make her first monthly payment?

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Business

Jaylan Reeves

31 January, 08:15

Rhonda plans to buy an $85 Father's Day present for her father, and the holiday falls on the third Sunday of June. She can afford to put it on layaway with a 20% down payment and $8 a month after that. If payments are due at the beginning of each month, when should Rhonda make her first monthly payment?

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Tyrell · Answer 1

October 1

Explanation:

Layaways are like reverse credit card shopping. In a layaway the customer pays for the product first (in installments) and then they can take it home.

Total price = $85

down payment = $85 x 20% = $17

remaining amount = $68 / $8 = 8.5 ≈ 9 monthly payments

Rhonda should start to make her first monthly payment in October 1. Her last payment will be due in June.