3. You want to buy a car for $50,000. The dealership offers you one of two incentive packages: An interest free loan for 3 years. This involves paying $12,500 immediately as a down payment, followed by 3 annual payments of $12,500 at the end of each year for 3 years. Pay cash up front with a $5,000 cash-back incentive (i.e., the price of the car net of the cash-back is $45,000. You have $100,000 in savings which earn an annual interest rate of 4%. Which incentive package should you take? Explain.