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?

Question

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?

GPT 3.5 · Answer

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}.