A car salesman once made the following pitch to one of

your authors: "If you buy this $10,000 car with cash you

will lose at least $1,500 over the next 3 years in forgone

interest (assumed to be 5 percent per year). If you take

one of our low-cost auto loans you have to pay only

$315 per month for the next 3 years. That amounts to

$11,340$10,000 for the car and $1,340 in interest.

With our car loan you will actually save $160 in

interest." What do you make of this argument?