Kangaroo Autos is offering free credit on a new $12,000 car. You pay $1,800 down and then $340 a month for the next 30 months. Turtle Motors next door does not offer free credit but will give you $1,040 off the list price.

a.	If the rate of interest is 10% a year (about 0.83% a month), calculate the present value of the payments to Kangaroo Autos.

b.	Which company is offering the better deal?