You need a new car and the dealer has offered you a price of $$$$20$ comma $00020,000,$ with the following payment$$ options: $($a$)$ pay cash and receive a $$$$2$ comma $0002,000$rebate$,$ or$($b$)$ pay a $$$$5$ comma $0005,000$ down payment and finance the rest with a $0\%0\%$ APR loan over $3030$ months. But having just quit your job and started an MBA$$ program, you are in debt and you expect to be in debt for at least the next $2\mathrm{.}52\mathrm{.}5$ years. You plan to use credit cards to pay your$$ expenses; luckily you have one with a low$($fixed$)$ rate of $12\%12\%$ APR$($monthly$).$ Which payment option is best for$$ you?

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Part $1$

Your monthly discount rate is enter your response here$\%.($Round to four decimal$$ places.$)$

Part $2$

For$$ you, the present value of option$($b$)$ is $$$enter your response here. $($Round to the nearest$$ cent.$)$

Part $3$

Which is the correct decision and$$ why?$($Select the best choice$$ below.$)$

A$.$

Accept option$($b$)$ because it is less expensive than option$($a$).$

B$.$

Accept option$($b$)$ because it is more expensive than option$($a$).$

C$.$

Accept option$($a$)$ because it is less expensive than option$($b$).$

D$.$

Accept option$($a$)$ because it is more expensive than option$($b$).$