You are planning to buy a new car. The cost of the car is $50,000. You have been offered two payment plans:

A 10 percent discount on the sales price of the car, followed by 60 monthly payments financed at 9 percent per year.

No discount on the sales price of the car, followed by 60 monthly payments financed at 2 percent per year.

If you believe your annual cost of capital is 9 percent, which payment plan is a better deal? Assume all payments occur at the end of the month.

Can you demonstrate these in EXCEL?