Use estimation to select the best response. Do not calculate.
If you purchase a $2,400 item and pay for it with monthly installments for 2 years, the monthly payment is __________.

A) more than $100 per month
B) $100 per month
C) less than $100 per month

Question

Use estimation to select the best response. Do not calculate. ​
If you purchase a $2,400 item and pay for it with monthly installments for 2 years, the monthly payment is __________.
​
A) more than $100 per month
B) $100 per month
C) less than $100 per month

Quizplus · Accepted Answer

To estimate, we can divide the total cost ($2,400) by the number of months (24 months in 2 years) to get an approximate monthly payment.

$2,400 ÷ 24 months = $100 per month

However, we also need to factor in any interest or financing fees that may be added. Typically, when paying for an item in installments, there will be some form of interest or financing charge. Based on this, it is likely that the monthly payment will be more than $100 per month. Therefore, the best choice is A: more than $100 per month.

Use Estimation to Select the Best Response