Calculating the Down Payment

Oct 13, 2025 by magicalceylontours.com 22 views

Introduction

In this article, we will delve into a mathematical problem that requires critical thinking and analytical skills. The problem revolves around a person named Adam who buys a treadmill and a dirt bike from a sports equipment store. The total cost of the items is denoted by the variable $$y$$ dollars. Adam signs an installment agreement that requires an $$8 %$$ down payment and monthly payments of $$x$$ dollars. Our goal is to determine the correct answer to this problem.

The Problem

Adam bought a treadmill and a dirt bike from a sports equipment store for $$y$$ dollars. He signed an installment agreement requiring an $$8 %$$ down payment and monthly payments of $$x$$ dollars. To find the correct answer, we need to understand the concept of down payments and installment agreements.

What is a Down Payment?

A down payment is an initial payment made towards the purchase of an item. In this case, Adam is required to make an $$8 %$$ down payment on the total cost of the treadmill and the dirt bike. This means that he needs to pay $$8 %$$ of the total cost of $$y$$ dollars as a down payment.

Calculating the Down Payment

To calculate the down payment, we need to find $$8 %$$ of the total cost $$y$$. This can be done by multiplying $$y$$ by $$0.08$$.

Down payment = $$y \times 0.08$$

Understanding Installment Agreements

An installment agreement is a contract between a buyer and a seller that outlines the terms of a purchase. In this case, Adam has signed an installment agreement that requires him to make monthly payments of $$x$$ dollars. The total cost of the items is denoted by $$y$$ dollars.

Calculating the Total Amount Paid

To calculate the total amount paid, we need to add the down payment to the monthly payments. Since Adam is making monthly payments of $$x$$ dollars, we need to multiply the number of months by $$x$$ to find the total amount paid.

Total amount paid = Down payment + (Number of months \times x)

Solving for x

To solve for $$x$$, we need to set up an equation using the information given in the problem. We know that the total cost of the items is $$y$$ dollars, and Adam is required to make an $$8 %$$ down payment. We also know that he is making monthly payments of $$x$$ dollars.

Let's assume that Adam is making $$n$$ monthly payments. Then, the total amount paid can be represented as:

Total amount paid = Down payment + (n \times x)

Substituting the values, we get:

Total amount paid = y \times 0.08 + (n \times x)

Since the total amount paid is equal to the total cost of the items, we can set up the equation:

y = y \times 0.08 + (n \times x)

Simplifying the equation, we get:

y - y \times 0.08 = n \times x

y \times 0.92 = n \times x

x = (y \times 0.92) / n

Conclusion

In this article, we have solved a mathematical problem that requires critical thinking and analytical skills. We have understood the concept of down payments and installment agreements, and we have calculated the total amount paid by Adam. We have also solved for $$x$$, which represents the monthly payments made by Adam.

Key Takeaways

A down payment is an initial payment made towards the purchase of an item.
An installment agreement is a contract between a buyer and a seller that outlines the terms of a purchase.
To calculate the total amount paid, we need to add the down payment to the monthly payments.
To solve for $$x$$, we need to set up an equation using the information given in the problem.

Final Answer

The final answer to the problem is:

x = (y \times 0.92) / n

This equation represents the monthly payments made by Adam, and it can be used to calculate the value of $$x$$.

References

[1] "Installment Agreements." Investopedia, 2023.
[2] "Down Payments." The Balance, 2023.

Glossary

Down payment: An initial payment made towards the purchase of an item.
Installment agreement: A contract between a buyer and a seller that outlines the terms of a purchase.
Monthly payments: Regular payments made by a buyer towards the purchase of an item.
Total amount paid: The total cost of an item, including the down payment and monthly payments.