Madison wants to buy a car for $9000. She will borrow money and repay the total in 3 years. The required monthly payment on her credit card would be $300. The monthly payment for a personal loan would be $278. How much money would Madison save if she chose the personal loan instead of the credit card?
First multiply 300 by 36 to figure out how much the credit card would be: $10,800. Then multiply 278 by 36 to figure out how much the personal loan is: $10,008. Then subtract $10,008 from $10,800: $10,800-$10,008=$792. She would save $792 :)
