You are considering buying a used Lada VAZ-2105, a classic automobile manufactured in the former Soviet Union, for a price of $21,480. The dealer is offering "0% financing" with equal monthly payments of $358 for five years with no down payment. However, if you choose to purchase the car with cash today, the price is $18,750.

a. Is the claim of 0% financing real? Why or why not?

b. If you feel the claim of 0% financing is false, what monthly interest rate is being charged?