Computing a Present Value Involving an Annuity and a Single Payment You have decided to buy a used car. The dealer has offered you two options: a. Pay $500 per month for 20 months and an additional $12,000 at the end of 20 months. The dealer is charging an annual interest rate of 24%. b. Make a one-time payment of $14,906, due when you purchase the car. - In present value terms, which offer is a better deal