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At Phill’s Discount Car Kingdom, you can purchase a used car for $14,000. Phill offers you...

At Phill’s Discount Car Kingdom, you can purchase a used car for $14,000. Phill offers you an immediate rebate of $1,000 to be used to reduce the cost of the car if you use his financing company which charges an annual interest rate of 3.6%, with interest compounded monthly for a term of 3 years. Alternatively, you could choose to finance from your local credit union for an annual rate of 2.8%, with interest compounded monthly for a term of 3 years. Assuming that you make equal payments at the end of each month in order to pay off your loan (regardless of which option you choose), what is the less expensive option and how much do you save on interest?

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