Scenario 3: Assume you go to buy a $22,000 car and are offered the following deals. For both deals you have $5,000 of your own money you can apply towards your new car (down payment).

$1,000 immediate cash back (which can be added to your down payment) and 6.3% interest over 4 years

Or

5.5% interest with no cash-back over 4 years

11. What is the monthly payment for the cash back offer?

PV	FV	Rate	Periods	Payment

12. What is the monthly payment for the 5.5% offer?

PV	FV	Rate	Periods	Payment

13. Which is the better deal (costs you less) and by how much over the life of the loans? Show the math.