# Thread: Initial Cost and Installments

1. ## Initial Cost and Installments

A bought 2 rings at euro 299 each and a watch at euro 140. 1/6 of total cost was paid at the time of purchase and balance in 12 equal installments. What was the amount of each months payment ?

Answer is $61.50 but how. It comes only if 1/6 is neglected at first but why should it be neglected ? 2. ## re: Initial Cost and Installments Originally Posted by haftakhan A bought 2 rings at euro 299 each and a watch at euro 140. 1/6 of total cost was paid at the time of purchase and balance in 12 equal installments. What was the amount of each months payment ? Answer is$61.50 but how. It comes only if 1/6 is neglected at first but why should it be neglected ?
Total cost = 2*299 + 140 = 738

Balance = 5/6 * 738 = 615

Each month's payment = 615/12 = 51.25

Yes thats the way it should be but the answer to the question is $61.50 4. ## re: Initial Cost and Installments Originally Posted by haftakhan Yes thats the way it should be but the answer to the question is$61.50
Then your textbook (?) is wrong.

5. ## re: Initial Cost and Installments

Originally Posted by alexmahone
Then your textbook (?) is wrong.

May be