Question

Madison wants to buy a car for $9000. She will borrow money and repay the total in 3 years. The required monthly payment on her credit card would be $300. The monthly payment for a personal loan would be $278. How much money would Madison save if she chose the personal loan instead of the credit card?

Answer 1

First multiply 300 by 36 to figure out how much the credit card would be: $10,800. Then multiply 278 by 36 to figure out how much the personal loan is: $10,008. Then subtract $10,008 from $10,800: $10,800-$10,008=$792. She would save $792 :)