Answer:
The extra amount he has to pay is $1500
Step-by-step explanation:
The person first checked loan payment with a car dealer and later found out that the loan offered online was cheaper.
We have to find how much amount of money he will save over the next 5 years.
When he went to a online car dealer , he was told that the loan amount he has to pay is $200 per month for 60 months or 5 year.
This amounts to [tex]P_{1}[/tex] = [tex]200 \times 60[/tex]
= $12000
When he approached car dealer in person , he was told to pay $225 per month for 5 years.
This amounts to [tex]P_2[/tex] = [tex]225 \times 60[/tex]
= $13500
The extra amount he has to pay is $13500 - $12000
=$1500
