#5

Sally wants to buy a Ford Mustang. The MSRP is $26,185. Ford offers a purchase financing plan with no money down and 48 end-of-month payments of $550. Should she buy the car for cash or takeFord's purchasefinancing? Assume that she has the cash and that she could invest her money and earn at least 4%.

What is the present value of all thepayments?

$

nothing

(Round to the nearestcent.)