Two dealers compete to sell you a new Hummer with a list price of $45,000. Dealer C oers to sell it for $40,000 cash. Dealer F oers 0-percent nancing: 48 monthly payments of $937.50. (48x937.50=45,000)

(a) You can nance purchase by withdrawals from a money market fund yielding 2% per year. Which deal is better?

(b) You always carry unpaid credit card balances charging interest at 15% per year. Which deal is better?