Question #b381c

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Answer 1 · 2017-03-10T09:19:44

$= $4912.64$

There are 2 different options available to buy the truck.

If you pay cash, the price is a once-off payment of $color(blue)($12,500)$ .

But if you do not have that amount available, there is the option of a deposit and then monthly installments for the next 2 years. (24 months.)

The total cost will then be made up of:

$$4000 + 24 xx$558.86$

$=$4000 + 13,412.64$

$=color(red)( $17,412.64)$

This is obviously much more than the cash price!

Paying cash you will save:

$color(red)(17,412.64) - color(blue)($12,500)$

$= $4912.64$