Frank wants to buy an entertainment system that costs $500, including taxes. to pay for the entertainment system, he will use a payment plan that requires him to take a down payment of $125, and then pay $72.50 each month for 6 months. what is the percent increase from the original cost of the entertainment system to the cost of the entertainment system using the payment plan?

The percent increase from the original cost of the entertainment system to the cost of the entertainment system using the payment plan is 12%.

Explanation:

Hi, to answer this question, first we have to obtain the price paid using the payment plan:

Cost using payment plan: 125+435=560

Original cost: $500

If we compare the price by applying the formula:

Percentage increase = (higher value - lower value/ lower value) \times 100

Replacing with our values:

P = ( 560-500/500)x100 = 0.12 x 100 =12%

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