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?

1 Answer
Shwetank Mauria
Apr 21, 2016

By paying cash, one could save #$522#.

Explanation:

You are going to pay #$165# for #24# months i.e. #$165xx24=$3960#.

If you pay in cash you have to pay #$3438#.

Hence by paying cash, one could save #$3960-$3438=$522#.

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