Answer:
48,004
Step-by-step explanation:
The Smiths save money by taking the 24-month loan at 9% APR.
Here's the breakdown without rounding:
Loan 1: 24 months at 9% APR
We don't need to calculate the monthly payment here as we only need to compare costs.
Total Cost (Loan 1) = Loan Amount (Months)
= $7,999 (24 months)
= $191,976
Loan 2: 30 months at 10% APR
We don't need to calculate the monthly payment here as well.
Total Cost (Loan 2) = $7,999 (30 months)
= $239,970
Cost Comparison and Savings
Total Cost (Loan 2) - Total Cost (Loan 1) = Savings
= $239,970 - $191,976
= $48,004
Therefore, the Smiths save $48,004 by choosing the 24-month loan at 9% APR.