You can buy the car for the list of $99,000. In this case, the dealer is willing to take $39,000 as an initial payment. The remainder of

$60,000 is a “zero- interest loan” to be paid back in equal installments over 36 months.

Alternatively, your local bank is willing to give you a car loan at an annual interest rate of 10%, compounded monthly (that is, 10%/ 12 per month).

Decide how to finance the car: Bank loan or zero- interest loan with the dealer, or cash payment.