Question
A television sells for
. Instead of paying the total amount at the time of the purchase, the same television can be bought by paying
down and
a month for 14 months. How much is saved by
paying the total amount at the time of the purchase?
is saved by paying the total amount at the time of purchase.
paying the total amount at the time of the purchase?
Ask by John Tyler. in the United States
Jan 23,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
By paying $800 upfront, you save $100 compared to the installment plan.
Solution

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Bonus Knowledge
To determine how much is saved by paying the total amount upfront instead of using the installment plan, let’s calculate the total cost of the installment plan.
The down payment is
, and there are 14 monthly payments of
.
Calculating the total monthly payments:
Now, adding the down payment to the total monthly payments:
Now we know that the total cost when paying in installments is
. Since the television retails for
, we find the savings by subtracting the retail price from the total installment cost:
Thus, you save
by paying the total amount at the time of the purchase.