The university spirit organization needs to buy a new trailer in which to haul the team mascot to the football games. A dealership in Lockhart has agreed to the following terms: $2.000 down plus monthly payments of $365 for 4 years, which includes interest at 6 percent. A dealership in Le- ander will agree to a $1,000 down payment, plus payments of $380 per month for four years. which includes interest at 12 percent. Which is the better deal, and why?

a. The Leander offer is better because the total payments of $19.240 are less than the total pay- ments of $19.520 to be made to the Lockhart dealership.

b. The Lockhart offer is better because the cost in terms of present value is less than the present value cost of the Leander offer.

c. The Lockhart offer is better because the financing rate is less.

d. The Leander offer is better because the cash down payment is less.

e. The Leander offer is better because the cost in terms of present value is less than the present value cost of the Lockhart offer.