My son wants to buy a used truck and he is trying to determine which is a better deal, to finance the purchase for 48 months or for 60 months.
The cost of the truck is $18,000 and he is approved for an 8% loan but can choose to finance the loan for either 48 or 60 months.
What will be the additional cost if he chooses the 60 month term instead of 48 months? You can assume that he can afford the payment regardless of the term length.