Question

A television sells for 900. Instead of paying the total amount at the time of the purchase the 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 purchase

Answer 1

The amount saved by paying the total amount at the time of purchase is $ 650

Solution:

Given , a television sells for $ 900

Cost of television at time of purchase = $ 900

Instead of paying the total amount at the time of the purchase the television can be bought by paying 150 down and 100 a month for 14 months

The cost spend when television is bought by paying 150 down and 100 a month for 14 months is given as:

cost spend = 150 + 100(14)

cost spend = 150 + 1400 = 1550

Thus cost spend by paying in months = $ 1550

Amount saved = cost spend by paying in months - Cost of television at time of purchase

Amount saved = $ 1550 - $ 900 = $ 650

Thus amount saved by paying the total amount at the time of purchase is $ 650