Answer
He saves 279 dollars by choosing the first option.
Work Step by Step
We find the cost of the first option:
$$ = 2000 + 170.06 \times 48 \\ = 8162.88 + 20000 \\ = 10,162.88$$
For the second option, the monthly payments only need to be paid for 48 months since there is no down payment:
$$ = 216.91 \times 48 \\ 10441.68$$
The first option is cheaper. The difference is:
$$=10441.68-10162.88 \\ = 278.8 $$
