Answer
The second financing plan will make the total cost lesser by $736.
Work Step by Step
Note that the cost of the car to be purchased is %18000.
Both car dealership offers two different 48month financing plans.
The first plan offers 0% interest for 4 years hence the total cost to be paid in 4 years is= $18000.$
The second plan offers a $2000$ discount hence the remaining cost is =$18000-$2000=$16000$.
But the $16000$ remaining cost will have an interest rate of 7.9% or 0.079 for 4 years, the total interest on top of the $16000$ cost is= $16000(0.079)$=$1264$.
The total cost of the car if the buyer of the cargoes for the second plan is $16000+1264=17264$.
The first plan costs the buyer $18000$ while the second plan costs only$17264$ which is $736$ lesser than plan one.
