a television sells for $850. instead of paying the total amount at the time of the purchase, the same…

a television sells for $850. instead of paying the total amount at the time of the purchase, the same television can be bought by paying $100 down and $50 a month for 14 months. how much is saved by paying the total amount at the time of the purchase?

a television sells for $850. instead of paying the total amount at the time of the purchase, the same television can be bought by paying $100 down and $50 a month for 14 months. how much is saved by paying the total amount at the time of the purchase?

Answer

Explanation:

Step1: Calculate the total amount paid in installments

The down - payment is $100 and the monthly payment is $50 for 14 months. The total amount paid in installments is the sum of the down - payment and the total of monthly payments. The total of monthly payments is $50\times14$. So the total amount paid in installments $A = 100+50\times14$. $A=100 + 700=800$.

Step2: Calculate the savings

The price if paid in full at the time of purchase is $650. The savings $S$ is the difference between the total amount paid in installments and the full - price at purchase. So $S=800 - 650$. $S = 150$.

Answer:

150