You are considering purchasing a new top of the line luxury car. The car's list price is $99,000. The dealer has offered you two alternatives for purchasing the car: -- You can buy the car for $90,000 and get a $9000 discount in the bargain. -- You can buy the car for the list of $99,000. In this case, the dealer is willing to take $39,000 as initial payment. The remainder of the loan $60,000 is a "zero-interest loan" to be paid back in equal installments over 36 months. Alternatively, your local bank is willing to give you a car loan of at an annual rate of 10%, compounded monthly. Decide how to finance the car: Bank loan or zero-interest loan with the dealer, or cash payment.