Answer: $965
Step-by-step explanation:
The used car is priced at $2,695.
If you borrow the money for the car, your payments will be $122 a month for 30 months. This means that the total amount of money that you would have paid at the end of 30 months at a rate of $122 per month is the amount paid per month multiplied by the total number of months. It becomes
Total payment = 122×30 = $3660
This means that you ended up paying higher than you would have paid if you paid cash.
Amount that you would have saved = amount paid over 30 months - cost of the car
Amount that you would have saved
= 3660 - 2695 = $965
