# Question b381c

Mar 10, 2017

 = $4912.64 #### Explanation: 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#