Tara has been planning to buy a laptop which costs $1000. A computer shop accepts payment in installments of $65 per month provided that a 20% down payment is made. If Tara wants to pay an additional $20 for the down payment, how much will her balance be after paying for 4 months?
How much is the down payment? ** Tara has to make a $1000 x 20/100 = $<<1000*20/100=200>>200 down payment.
How much is the total down payment? ** Since Tara wants to pay $20 more for the down payment, her total down payment will be $200 + $20 = $<<200+20=220>>220.
How much is the remaining balance? ** So her remaining balance payable over a year is $1000 - $220 = $<<1000-220=780>>780.
How much is the monthly payment? ** Tara has to make a monthly payment of $780/year / 12 months/year = $<<780/12=65>>65/month.
How much is the total cost of the payments? ** The total cost of her payments for 4 months is $65/month x 4 months = $<<65*4=260>>260.
How much is Tara's balance after 4 months? ** Therefore, Tara's balance after 4 months is $780 - $260 = $<<780-260=520>>520.
#### 520