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Question:

A man decided to buy new furniture from Futuristic Furniture for $2600. Futuristic Furniture gave the man two choices: pay the entire amount in one payment with cash, or pay $1000 as a down payment and $120 per month for two full years in the financing plan. If the man chooses the financing plan, how much more would he pay?

A
$1280 more

Explaination

Multiply $120 by 24 months (a full two years) to get $2880. Add the thousand dollars for the down payment to get $3880. Find the difference between the entire amount all at once ($2600) and the amount paid in the plan ($3880). To find the difference, you subtract. The difference shows that $1280 more is paid with the financing plan.

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