If a TV set is bought on the installment plan there is a down payment of $25 and 12 monthly payments of $15 each. The same set may be bought for cash at 12% less than the installment price. The amount saved by making a cash payment is:
25 + 12*15 = 205
.12 * 205 = 24.60 saved
To find the amount saved by making a cash payment, we need to compare the total amount paid on the installment plan with the cash price.
The down payment for the installment plan is $25.
There are 12 monthly payments of $15 each, which gives a total payment of $15 * 12 = $180.
So the total amount paid on the installment plan is $25 + $180 = $205.
Now, let's calculate the cash price. The cash price is given as 12% less than the installment price.
12% of $205 = (12/100) * $205 = $24.60
Therefore, the cash price is $205 - $24.60 = $180.40.
To find the amount saved, we subtract the cash price from the installment price:
$205 - $180.40 = $24.60.
Therefore, the amount saved by making a cash payment is $24.60.
To find the amount saved by making a cash payment, we need to compare the installment price and the cash price.
Let's start by calculating the installment price. We have a down payment of $25 and 12 monthly payments of $15 each. The total cost of the TV set under the installment plan can be calculated as:
Installment price = Down payment + (Monthly payment x Number of months)
Installment price = $25 + ($15 x 12)
Installment price = $25 + $180
Installment price = $205
Now, let's calculate the cash price, which is 12% less than the installment price:
Cash price = Installment price - (12% x Installment price)
Cash price = $205 - (0.12 x $205)
Cash price = $205 - $24.60
Cash price = $180.40
To find the amount saved by making a cash payment, we subtract the cash price from the installment price:
Amount saved = Installment price - Cash price
Amount saved = $205 - $180.40
Amount saved = $24.60
Therefore, the amount saved by making a cash payment is $24.60.