Question

What is the difference between paying 10000 cash for a car or paying a loan of 200 per month for 60 months

Answer 1

The difference lies in the end amount you pay as well as how long you pay it. The car is a one time payment that only requires $10,000. On the other hand, a loan means you are in debt for longer, but only have to pay little by little. According to the question, if you pay 200 for 60 months (200*60) you end up paying $12,000. Hope this helped :))

Answer 2

10000 cash versus 200*60=12000 therefore the difference between the two to amounts paid is is
12000-10000=$2000

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