Horacio wants to buy his friend's car for $4,000, but he will have to borrow the money to do it. Horacio's friend says he will accept 24 monthly payments of $175, but Horacio knows he can get a small loan at the local credit union for 6% APR. How much better (lower) or worse (higher) is the credit union loan than the terms Horacio's friend is offering? The friend has a better APR by 4.73% The credit union payment is lower. The credit union has a better APR by 1.3% The credit union has a worse APR by 0.11% The credit union has a worse APR by 1.27%