You have created a new startup and now you need to buy an equipment that

costs $$20,000.$ The seller of the equipment offers you to choose between one of

the following two deals:

$1.$ The seller would take $10\%$ off the price, and lend you the balance at an

annual percentage rate of $9\%,$ compounded yearly

$2.$ The seller would lend you $$20,000$ at an annual percentage rate of $3\%,$

compounded yearly

Which option do you prefer, and why?