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4. Rebate Versus Low Interest Rate. Kyle Parker of Concord, NewHampshire, has been shopping for a new car for several weeks. Hehas negotiated a price of $34,000 on a model that carries a choiceof a $2,500 rebate or dealer financing at 2 percent APR. The dealerloan would require a $1,000 down payment and a monthly payment of$578 for 60 months. Kyle has also arranged for a loan from the bankwith a 5 percent APR. Advise Kyle about whether he should use thedealer financing or take the rebate and get financing from thebank.N6060I/Y5 / 12 = 0.41672 / 12 = 0.1667PV34,000 - 2,500 = 31,50034,000 - 1,000 = 33,000PMTCPT-578FV00Total payments (60 x PMT)60 x 578 = 34,680 + 1,000 = 35,680Total financing costs (Total payments - PV)35,680 - 33,000 = 2,680