You have decided to buy a car, the price of the car is $18,000. The car dealer presents you with two choices:A. Purchase the car for cash and receive $2,000 instant cash rebate?your out pocket expense is $16,000 today.B. Purchase the car for $18,000 with zero percent interest 36-month loan and with monthly payments.The market rate is 4%. Which option above is cheaper? How much do you save?Please explain using the attached formula

Future and Present Value 1. FV = C(1+r)T 2. PV = D ( 1 +r) I 3. FV = PV(1 +r)T 4. r = FV - 1 5. T = in FV PV In(1+r) Annuity 1. PV = pmt 1 - 1 r (1+r)T] 2. pmt = PV.r 1 (1+r)T 3. T = Lin(pmt)-In(pmt-PV.r)] In(1+r) 4. FV = pmt r [(1 + r)7 - 1] Annuity Due 5. PV = pmt 1 1 r (1+7)T (1+r) pmt 6. FV = [(1 + r) - 1](1 +r) r EAR & APR APR\\ m 1. EAR = (1+ - 1 m 1 2. APR = m (1+ EAR)m - 1