Question

Mr. Williams paid $1,250 in cash for a new television set. If he had bought it using the store's payment plan, he would have had to pay a deposit of $350 and 9 monthly installments of $150. How much money did he save by paying in cash?

Answer 1

$450

Explanation:

Mr. william's paid $1250 in cash for a new television set. But if he was to use the store's deposit plan, he will have to make some installmental payment after paying an initial deposit.

Initial deposit = $350

Installmental payments of $150 for 9months.

His total payment will be = Initial payment + the total amount of the installmental payment.

$350 + (9 x $150) = $350 + 1350 = $1700

$1700 - $1250 = $450 savings

By paying in cash he will be saving an amount of $450.