A car dealership's commercials claim that this year's models are 20% off the list price, plus they will pay the first 3 monthly payments. If a car is listed for $26,580, and the monthly payments are set at $250, what is the total potential savings?
Correct Answer: C
Rationale: To calculate the total potential savings: First, find the 20% discount on the list price of $26,580: 0.20 $26,580 = $5,316. Then, determine the savings over the first 3 months of payments: 3 months $250/month = $750. Add the discount and the monthly payment savings to get the total potential savings: $5,316 + $750 = $6,066. Therefore, the correct answer is $6,066. Choice A, $1,282, is incorrect because it does not account for the total savings from both the discount and the monthly payments. Choice B, $5,566, is incorrect as it miscalculates the total savings by excluding the savings from the monthly payments. Choice D, $20,514, is incorrect as it does not consider the discount and only focuses on the list price.