Lawrence purchased a used pickup truck for $16,550 by paying cash. If he had financed the truck with an installment plan, he would have had to pay a $3,000 down payment and 48 monthly installments of $390. How much did he save by paying cash?

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Answer: $5,362

Step-by-step explanation: 48 monthly installments of $390 + $3,000 down payment.

Subtracting that from the payed cost in cash.

48*390=18,720

18,720+3,000=21,720

21,720-16,550=5,362