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9 August, 15:26

John Walters is comparing the cost of credit to the cash price of an item. If John makes a down payment of $160 and pays $35 a month for 24 months, how much more will that amount be than the cash price of $725?

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  1. 9 August, 19:12
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    The amount is $275 more that the cash price of $725.

    Step-by-step explanation:

    It is given that John makes a down payment of $160 and pays $35 a month for 24 months.

    Down payment = $160

    Total amount of installments = $35 * 24 = $840

    Total amount of product = Down payment + Total amount of installments

    Total amount of product = $160 + $840 = $1000

    Cash price = $725

    Difference between credit and cash price is

    Difference = $1000 - $725 = $275

    Therefore the amount is $275 more that the cash price of $725.
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