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

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