Cash over installments question .

There is a question in my book which is:

Quote:

Mr.Brown can pay for an article in either of the two ways. He can pay the list price with a down payment of 20% and the balance in 5 installments of $16 each or he can pay the cash price of $88.How much does he save by paying the cash price ?

The book says the answer is $12.00 but according to me its $9.60. Here is how i did it

20% of 88 is $17.6

The installments will cost him :16x5=80

So He has to pay a total of 17.6+80=97.6

The difference would then be 97.6-88=9.6Ans

Is my answer correct and that's a typo in the book or am i doing something wrong here ??

Re: Cash over installments question .

Quote:

Originally Posted by

**MikeNoob** Here is how i did it

20% of 88 is $17.6

That should be 20% of 100, leaving 80 (5 * 16 = 80)

If he chooses to pay cash, the 100 is reduced to 88.

12 is CORRECT.

Re: Cash over installments question .

Could you please clarify that a bit more. Why should it be 20% of 100 and not 20% of 88 (since the actual price of the item is $88)?

Re: Cash over installments question .

I am just confused why we should take 20% of 100 and not of 88

Re: Cash over installments question .

5*16 =80, this represents 80% of the total value since he already paid 20% of it, so 100% of the total is 100,

therefore we take 20% of 100 not 88.

Re: Cash over installments question .

Thanks for clearing that up guys!!!