You can choose either a $2000 cash discount or a low 2.8% financing rate to buy a car which is valued at $20,000. If you took the cash discount, you will finance the remaining amount at a rate of 4%. If you took the low financing rate option, you will not get any cash discount. Loan is over a 4 year period. Payments are made monthly. Interest is Compounded monthly. Which of the two choices would you select?

a) The Cash discount option

b) Low Interest rate financing option

c) Neither: I will find me a rich spouse and have the spouse do all the financing Dude !