Question

Emily Putnam wants to purchase a computer that sells for $1250. She can either pay the total amount at the time of purchase or she can agree to pay the store $120 down and $80 a month for 15 months. How much money can she save by paying the total amount at the time of purchase?

Answer 1

$70

Explanation:

Paying at once, she pays a total of $1250.

Paying a deposit and monthly payments, she pays a total of

$120 + 15 × $80 = $120 + $1200 = $1320

The difference is

$1320 - $1250 = $70