You are going to college in the fall. you have just heard from your roommate and he asks you to bring the stereo system for the dorm room. you find the perfect system for $1750. you have to put 25% down and you can pay the balance in 18 equal installments. the clerk tells you that you will pay a total finance charge of $112. how much is the down payment and what is the total amount financed including the finance charge? a. $437.50; $1424.50 b. $437.50; $1312.50 c. $43.75; $1818.25 d. $43.75; $1706.25

Option a. is the correct answer.

Step-by-step explanation:

The cost of stereo system = $1,750.00

You have to put down payment = 25% of 1750

= 0.25 × 1750 = $437.50

therefore the balance amount for installments = 1,750 - 437.50 = $1,312.50

Now clerk tells you that you will pay a total finance charge = $112.00

so it would be added to balance amount

= 1,312.50 + 112.00 = $1,424.50

So the down payment would be $437.50 and total amount financed incuding the finance charge would be $1,424.50.

step-by-step explanation:

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step-by-step explanation: