Classic Autos is offering free credit on $55,000 car. You pay $10,000 down today and then balance at the end of five years. Premium Motors next door does not offer credit, but will give you $15,000 off the list price. Which company is offering a better deal? Assume annual compounding. Assume 8% interest rate.
A. Premium Autos
B. Both are offering the same deal
C. Cannot determine without further information.
D. Classic Autos