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Hoping for a quick reply. Please solve the answer properly in detail. :) 3. You are about to purchase a new car and have two

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Hoping for a quick reply. Please solve the answer properly in detail. :)

3. You are about to purchase a new car and have two options to pay for it. You can pay $20,000 in cash immediately, or you can get a loan that requires you to pay $500 each month for the next 48 months (four years). If the monthly interest rate you earn on your cash is 0.5%, which option should you take? Why? [Marks 3]

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