2. Mr. Thomas wants to buy a television that costs $2435. If Mr Thomas pays for the television in full, he will enjoy a discount of 12%. If he chooses to pay by instalments, no discount will be given and he will have to pay 15% of the selling price as down payment, followed by 12 monthly instalments of $185 each. How much will Mr Thomas save if he chooses to pay in full instead of paying by instalments?
Question
- Mr. Thomas wants to buy a television that costs 185 each. How much will Mr Thomas save if he chooses to pay in full instead of paying by instalments?
Solution
Step 1: Calculate the discount amount if Mr. Thomas pays in full.
The discount is 12% of $2435.
Discount = 12/100 * 2435 = $292.2
So, the amount Mr. Thomas has to pay if he chooses to pay in full is 292.2 = $2142.8
Step 2: Calculate the total amount Mr. Thomas has to pay if he chooses to pay by installments.
The down payment is 15% of $2435.
Down payment = 15/100 * 2435 = $365.25
The total amount for the 12 monthly installments is 2220
So, the total amount Mr. Thomas has to pay if he chooses to pay by installments is 2220 = $2585.25
Step 3: Calculate the difference between the two amounts.
The amount Mr. Thomas will save if he chooses to pay in full instead of paying by installments is 2142.8 = $442.45
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