Question

Harry has $2500 in cash to pay for a secondhand car, or he can pay $500 down and $155 per month for 2 years. If he doesn't pay the full amount in cash, he knows he can make $150 by investing his money.
How much will he lose if he uses the more expensive method of payment?

Answer 1

If Harry pays the full amount in cash, he will not lose any money, as he will use all of his $2500.

If he chooses to make payments, he will make 24 payments of $155, which equals 24 * 155 = $<<24*155=3720>>3720.
He will also pay an additional $500 down payment, so his total cost will be 3720 + 500 = $<<3720+500=4220>>4220.

If he chooses to invest his money and make $150, he will be left with 2500 + 150 = $<<2500+150=2650>>2650.

Therefore, he will lose 2650 - 4220 = $<<2650-4220=-1570>>1570 if he chooses the more expensive method of payment. Answer: \boxed{1570}.