Question

a couch sells for $1260. instead of paying the toatl amount at the time of the purchase, the same couch can be brought by paying 400 down and 80 a month for 12 months. how much is saved by paying the total amount at the time of the purchase

Answer 1

Answer:

$100 can be saved.

Step-by-step explanation:

A couch sells for = $1260

The same couch can be brought by paying 400 down payment and $80 per month for 12 months.

Total amount will be paid  = 400 + (80× 12)

                                            = 400 + 960

                                            = $1,360

Difference between the amounts = 1360 - 1260

                                                       = $100

You can save $100  by paying the total amount at the time of the purchase.

Answer 2

If you pay $400 down, plus $80 for the next 12 months, that means you're paying (80*12)+400 which is equal to $1360. You're saving $100 by paying the entire total up front.