Select the correct answer. Mrs. Smith wants to use an installment plan to buy a washing machine and dryer set priced at \( \$ 1,500 \). The installment plan requires a down payment of \( 12 \% \). How much will Mrs. Smith have to pay at the time of purchase (not including taxes)? A. \( \$ 120 \) B. \( \$ 150 \) C. \( \$ 180 \) D. \( \$ 1,200 \)

To find out how much Mrs. Smith needs to pay at the time of purchase, we first calculate the down payment. The down payment is \( 12\% \) of \( \$ 1,500 \). Calculating this gives us: \[ \text{Down Payment} = 0.12 \times 1500 = 180 \] So, at the time of purchase, Mrs. Smith will have to pay \( \$ 180 \). Therefore, the correct answer is C. \( \$ 180 \). Did you know that installment plans, often used for major purchases like appliances or cars, originated in the early 20th century as a way to make goods more accessible to consumers? This allowed people to buy items they might not have been able to afford outright, revolutionizing consumer culture! When opting for installment plans, it's crucial to understand the terms thoroughly. Common mistakes include underestimating the total cost with interest or failing to budget for monthly payments. Always read the fine print and calculate the total payment to avoid surprises later!