A local car dealer has annoying ads all the time on the radio. The one in question claims that they can save you tons of money by offering zero interest for 60 months (monthly payments) over the local bank that is offering 4.90% interest on the same car. Just what amount are you saving by taking the zero interest loan if the loan amount is $25,000?

a. $1,788. b. $3,238. c. $333.45. d. Nothing, the ad is fictitious. There is no such thing as a zero interest loan.