Question

You can buy a car for $5995.67 cash or pay $759.00 as a down payment and $129.95 a month for 4 years.

How much more does the installment plan cost than paying cash?
A. $1000.93
B. $241.93
C. $507.43
D. $2475.27
E. $99.27

Answer 1

well, if you had the cash right now, you can put it down cold for 5995.67 bucks

OR

put as a downpayment now 759 and then over 48 months pay 129.95 each month, well, 129.95 48 times is 129.95 * 48 = 6237.6, now let's add the 759 down and that's 6237.6 + 759 = 6996.6.

well, heck if you had the cash it'd be 5995.67, if you don't is 6996.6, their difference is 6996.6 - 5995.67 = 1000.93.