Solve the problem.
-Scrambled Electronics will finance a $235 TV set for $50 down and $38.32 a month for 6 months. How much money can you save by paying cash for the TV set?
A)$279.92
B)$5.08
C)$55.08
D)$44.92

Question

Quizplus · Accepted Answer

The total cost of the TV set with financing is $50 down plus 6 months of $38.32, which is:

$50 + 6 x $38.32 = $50 + $229.92 = $279.92

If you pay cash for the TV, you only need to pay $235, so the amount of money you can save is:

$279.92 - $235 = $44.92

Therefore, the best choice is D, which corresponds to the amount of money you can save by paying cash. The total cost of financing the TV set is:
$50 (down payment) + $38.32/month for 6 months = $50 + $229.92 = $279.92

Therefore, if you pay cash for the TV set, you can save $279.92. Thus, the best choice is D.

Solve the Problem. -Scrambled Electronics Will Finance a $235 TV Set for $50