Bubba bought a car for $10,000. He decided to put a down payment of 1/5 of the total and paid the balance in 24 equal payments. How much was each payment?

Question

Bubba bought a car for $10,000. He decided to put a down payment of 1/5 of the total and paid the balance in 24 equal payments. How much was each payment?

Answer 1

We start off by calculating the down payment.  $10,000 x (1/5) is the same as $10,000÷5 or $2000.

 

This means that you would divide the remaining $10000-2000 or $8000 into 24 payments.

 

8000÷24 ≈ $333.33 per payment.