You have $10,000 down payment on a $20,000 car. The dealer offers you the following two options:

(a) paying the balance with endofmonth payments over the next three years at ;

(b) a reduction of $500 in the price of the car, the same down payment of $10,000, and bank financing of the balance after down payment, over 3 years with endofmonth payments at . Which option is better?

(12) = 0.12 (12) = 0.18 (12) = 0.12 (12) = 0.18