Your father is planning to purchase a new car at a price of $24,000. The dealer offers him interest-free financing for five years (60 monthly payments of $400) or he can receive a cash rebate of $1,250. If he asks for your advice, what would you tell him regarding the two options? Reccomend an option and incidcate why you believe it is preferred.

Hint: You may want to find the interest rate that would make him indifferent between the two options and use that in making your recommendation.