You are visiting a car dealer ( Dealer A ) that sells all - electric cars and you fall in love with a car that is equipped with the latest and greatest features . To finance the car purchase , the salesman offers the following payment plan over 7 years : Down Payment Now : $ 3,500 Monthly Payments for first 5 years ( Year 1 to 5 : $ 600 per month Monthly Payments for Year 6 and 7 : $ 500 per month ( a ) What would be the price of the car if the interest rate charged by the dealer is APR 4.5 % annual compounding ? ( b ) Another car dealer nearby ( Dealer B ) sells the same car with the same price . This dealer offers you to pay monthly payment for 7 years ( 1st payment starting from end of the month ) without any down payment now . Which dealer would you choose ( A orB)