Question

Lawrence purchased a used pickup truck for $16,550 by paying cash. If he had financed the truck with an installment plan, he would have had to pay a $3,000 down paymentand 48 monthly installments of $390. How much did he save by paying cash?$4,850$6,790$7.240$5,170None of these choices are correct.

Answer 1

Lawrence purchased a used pickup truck for $16,550 by paying cash. If he had financed the truck with an installment plan, he would have had to pay a $3,000 down payment

and 48 monthly installments of $390. How much did he save by paying cash?

$4,850

$6,790

$7.240

$5,170

None of these choices are correct.

we have that

3,000+48(390)=$21,720 ----> If he had financed the truck with an installment plan

Find out the difference

21,720-16,550=$5,170

therefore

answer is $5,170