Suppose that you decide to buy a car for $61,000, including taxes and license fees. You saved $ 11000 for a down payment. The dealer is offering you a choice between two incentives. Incentive A is $5000 off the price of the car, followed by a four-year loan at 7.28%. Incentive B does not have a cash rebate, but provides free financing (no interest) over four years.
The difference in monthly payments between the two offers is _____
Which incentive is the better deal?
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