Problema Solution

A television sells for $750. 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. Which is the better deal and why?

Answer provided by our tutors

$750 paying the total amount at the time of the purchase


100 + 14*50 = $800 not paying at the time of the purchase


since


750 < 800


the first deal (paying at the time of the purchase) is better.