Question

Linda financed $2,300 of furniture. The furniture store offered two finance plans: Plan A: Monthly payments of $110.42 for two years. Plan B: Monthly payments of $85.47 for three years. Which plan will Linda pay the least amount for the furniture and how much will she save? answer is a plan a 426 saved

Answer 1

We calculate the total amount that needs to be paid by multiplying the amount per month and the total number of months.

Plan A: Total amount  = ($110.42/month)(24 months)  = $2650.08
Plan B: Total amount = ($85.47/month)(36 months) = $3076.92

Thus, Linda will pay a lesser amount for Plan A. Also, the amount that can be saved is $426.84.