A computer can be bought for 63500 on cash payment or by paying 22 equal monthly installments for sh 3200 in a certain shop. Which payment plan is cheaper and by how much ??

Answer 1

To determine which payment plan is cheaper, we need to compare the total amount paid under each plan.

Cash payment:
Price of computer = $63500

Total amount paid = $63500

Monthly installment payment:
Price of computer = $3200 per month for 22 months

Total amount paid = $3200 * 22 = $70400

So, the cash payment plan is cheaper by $70400 - $63500 = $6900.

Therefore, paying in cash is cheaper by $6900.

Answer 2

Paying cash is cheaper by 6900

Answer 3

Yes, that is correct. Paying in cash is cheaper by $6900 compared to paying in monthly installments.