Question

A television sells for $950. Instead of paying the total amount at the time of the purchase, the same television can be bought by paying $150 down and $100 a month for 14 months. How much is saved by paying the total amount at the time of the purchase

Answer 1

$600

Explanation:

The cost using time payments is ...

down payment + monthly payment × number of months

= $150 +100 × 14

= $150 +1400

= $1550 . . . . cost of purchase on time

Then the savings when paying at the time of purchase is ...

$1550 -950 = $600