Question

Chen has $500 saved for a new TV. There is one on sale for $700. He can wait and save more money, or he can finance his purchase and make payments for two years. The payments add up to $850. Should he buy the TV on sale now?

Answer 1

save and pay the $700

Step-by-step explanation:

The answer in for this question is pretty straight forward. If he saves up a little bit more and buys the TV he would be paying a total amount of $700. On the other hand if Chen finances the TV, the total amount that he would need to pay back would be $850 (which most likely includes interest) Therefore the best option would be to save and pay the $700 instead of paying an extra $150 to get it a little sooner.