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?
The answer is C) $522. If one month is $165, then twenty-four months will be $3960 ($165 × 24 months = $3960). Subtract $3438 from $3960 to get $522 ($3960 – $3438 = $522). You would save $522.
