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The individual purchasing the jeep using cash of $14,000 would save $6,565.20
What is the difference between cash and financing options?
The difference between the two options, outright cash payment or financing with $5,000 down payment is the interest that would be paid on the financing option.
The cash payment is $14,000 outright, whereas the total amount paid under the financing option is the down payment plus the sum of all 24 monthly payments
down payment=$5,000
total monthly payments=24*$648.55
total monthly payments=$ 15,565.20
total payments under financing option=$5,000+$ 15,565.20
total payments under financing option=$20,565.20
The amount saved as a result of paying cash is computed thus:
amount saved by paying cash=$20,565.20-$14,000.00
amount saved by paying cash=$6,565.20
Find out more about down payment on:https://brainly.com/question/22846480
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