You are planning to buy a car worth $20,000. Which of the two deals described below would you choose, both with a 48-month term? (NB: estimate the monthly payment of each offer).

i) the dealer offers to take 10% off the price, then lend you the balance at an annual percentage rate (APR) of 9%, monthly compounding.

ii) the dealer offers to lend you $20,000 (i.e. no discount) at an APR of 3%, monthly compounding