A couch sells for $820. Instead of paying the total amount at the time of purchase, the same couch can be bought by paying $400 down and $60 per month for 12 months. How much is saved by paying the total amount at the time of purchase?
The total cost per month is $60/month for 12 months so 60*12 = $<<60*12=720>>720
The total paid in installments is $720 per month so added to the down payment makes 720+400 = $<<720+400=1120>>1,120
If the couch is bought outright for 820 then 1120-820 = $<<1120-820=300>>300 is saved. Answer: \boxed{300}.
To find out how much is saved by paying the total amount at the time of purchase, we need to compare the total cost of paying in installments versus paying upfront.
The down payment is $400, and the remaining balance is $820 - $400 = $<<820-400=420>>420.
The monthly payment is $60, and the total number of months is 12.
To calculate the total cost of paying in installments:
Total cost = down payment + (monthly payment * number of months)
Total cost = $400 + ($60 * 12)
Total cost = $400 + $720
Total cost = $<<400+720=1120>>1120
Therefore, if the total amount is paid at the time of purchase, there would be a saving of $1120 - $820 = $<<1120-820=300>>300.