You are in the process of purchasing a new automobile that will cost you $27,500. The dealership is offering you either a $2500 rebate (applied toward the purchase price) or 1.9% financing for 48 months (with payments made at the end of the month). You have been pre-approved for an auto loan through your local credit union at an interest rate of 6.5% for 48 months.
a) If you take the $2500 rebate and finance your new car through your credit union your monthly payments will be?
b) If you forgo the $2500 rebate and finance your new car through the dealership your monthly payments (with payments made at the end of the month) will be?