Question

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7.   A used motorcycle is priced at $3,438. If you borrow the money for the motorcycle, your payments will be $165 a month for 24 months. How much will you save by paying cash?
A. $500
B. $272
C. $522
D. $350

Answer 1

Let's calculate how much do you spent paying monthly $165:
24*165=3960 ($)

If you pay cash you will spent $3438

The difference between those two is how much you save paying cash:
3960 - 3438 = 522 ($)

The answer is C.