A college student is buying a used car for $10,000. The student can either pay in full with cash from savings, or finance the car for 60 months at a monthly compounding interest rate of 5.25%, which results in a monthly payment of $216.57.

How much more is paid over the life of the loan versus paying in cash?


O $2,994.20
O$12,994.20
O $1,082.85
O $11,082.85