A car company is offering a choice of deals. You can receive $2,000 cash back on the purchase or a 2.6 percent APR, 3-year loan. The price of the car is $22,000 and you could obtain a 3-year loan from your credit union, at 6.6 percent APR.
Which deal is cheaper?
Please show work. If this can be done in a financial calculator that is fine too. Just need to see the work to figure out which deal is cheaper.