You are in the process of purchasing a new automobile that will cost you $25,000. The dealership is offering you either a $2,000 rebate (applied toward the purchase price) or 4.8% financing for 60 months (with payments made at the end of the month). You have been pre-approved for an auto loan through your local credit union at an interest rate of 7.5% for 60 months. Should you take the $2,000 rebate and finance through your credit union or forgo the rebate and finance through the dealership at the lower 4.8% APR?

You should reject both option A and option B

You may go with either option A or option B because they are equivalent.

Forgo the rebate and go with the dealership.

Finance through your local credit union.