(EAIR in loans) You're considering buying a new top-of-the-line luxury car. The car's list price is $99,000. The dealer has offered you two alternatives for purchasing the car: You can buy the car for $90,000 in cash and get a $9,000 discount in the bargain. 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 install-ments 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.