Question

Nancy Martinez purchased a used car for $13,295 by paying cash. If she had financed the car with an installment plan, she would have had to pay a $5,000 down paymentand 36 monthly installments of $355 each. How much did she save by paying cash?$4,970$4,684$4,562$4,485None of these choices are correct.

Answer 1

The car she bought by paying cash is $13,295 .

The second method is,

36 monthly installments of $355 each and the downpayment of $5,000.

Calculate the total amount,

$36\times355+5000=17780$

Subtract the installment plan by the paying cash to get the amount she save by paying cash

$17780-13295=4485$

The correct option is d.