You are considering buying a flying car with a MSRP $($manufacturer$\text{'}$s suggested retail price$)$ of $$600,000.$ The

boat dealer has offered you two alternatives for purchasing the boat: You can buy the car for $$540,000$ in cash

and get a $$60,000$ discount OR you can buy the car for $$600,000$ with a down payment of $$280,000.$ The balance

can be paid with a zero interest loan to be paid back in $36$ equal monthly installments. Your bank is willing to give

you a $3$ year$-$loan $($that will require monthly payments$)$ at an annual rate of $12\%$ to fund option A$.$ Decide which

option you should choose to finance the car. The assumption is that you have $$280,000$ cash and any additional

money would need to be borrowed or financed. In your work calculate what the effective borrowing rate is when

you finance with the dealer. HINT $=$ this problem is simple but complex. The real question is how much does the

car really cost? The answer is the amount that you could purchase it with cash. Anything above that is hidden

finance charges. Be sure you figure out both options and calculate the effective annual rate of borrowing or EAR.