Dean is planning to purchase a new NissanAltimawhich costs$26,865. He has saved up $3,200 to put toward it. He is thinking about getting a loan for it from his credit union, but he could also keep driving his beat-up old car for a while longer and save up cash for the new one.

Possibility Two: Saving Up

You've already calculated the total Dean would spend on the car if he gets the loan, and also the total he would spend on the car if he saves up for it. Use those two numbers to determinehow much less he would pay for the car by saving up for it instead of getting the loan.