What is the savings over three years if insurance costs $400 per month, with a 12% discount for early payments?

To determine the savings over three years when insurance costs $400 per month with a 12% discount for early payments, we first need to calculate the total insurance costs without any discounts.

Over three years (36 months), the total cost would be calculated as follows:

Total Cost = Monthly Cost x Number of Months = $400 x 36 = $14,400.

Next, we apply the 12% discount for early payment. The discount would amount to:

Discount Amount = Total Cost x Discount Rate = $14,400 x 0.12 = $1,728.

The total amount after applying the discount will be:

Total Amount after Discount = Total Cost - Discount Amount = $14,400 - $1,728 = $12,672.

The savings from the early payment can be calculated by taking the difference between the total cost without the discount and the amount after the discount:

Savings = Total Cost - Total Amount after Discount = $14,400 - $12,672 = $1,728.

However, it appears there was a miscommunication in the figure or the interpretation of the savings. To ensure proper understanding, one should always carefully verify the calculations and confirm the numbers presented in the choices match with any derived conclusions