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.
