A situation that is probably useful for many people to understand.
$12000 cars for $8000 cash or $2000 down payment and $150 a month for 4 years. How much can you save by paying cash?
Find the total cost of the two options.
Option A: $8,000
Option B: $2,000 + ($150/month)(12 months/year)(4 years)
In option B, you add the initial cost to the rate multiplied by the time (with the correct units)
The find the difference between them.