8. A consumer makes a $400 down payment on a television that costs $1,570. How many months will it take to pay off the television with monthly payments of $100? (Assume no interest)
Answer: B
It will take 12 months to pay off the television.
After making a $400 down payment on a television costing $1,570, the remaining balance is $1,170. With monthly payments of $100, it will take 12 months to pay off this balance.
A) 16
Option A is incorrect because if it took 16 months to pay off the remaining balance of $1,170 with monthly payments of $100, the total amount paid would be $1,600, which exceeds the remaining balance.
B) 12
Option B is correct. The remaining balance after the down payment is $1,170, and dividing this amount by the monthly payment of $100 results in 11.7 months. Since payments are made monthly, this rounds up to 12 months to fully pay off the television.
C) 11
Option C is incorrect because paying off the remaining balance of $1,170 in 11 months would only total $1,100 paid, leaving a balance of $70 still owed after 11 months.
D) 15
Option D is incorrect as it would mean paying off the remaining balance over 15 months. At $100 per month, this would total $1,500, which again would exceed the necessary amount to pay off the remaining balance.
Conclusion
Option B is definitively correct as the calculation shows that 12 months of $100 payments will cover the remaining balance of $1,170 after the down payment. All other options either overestimate or underestimate the time needed to pay off the television, demonstrating that they do not align with the payment structure provided in the question.