Kangaroo Autos is offering free credit on a new $13,000 car. You pay $1,600 down and then $380 a month for the next 30 months. Turtle Motors next door does not offer free credit but will give you $1,060 off the list price.

a. If the rate of interest is 0.58% a month, calculate the present value of the payments to Kangaroo Autos. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b. Which company is offering the better deal?

multiple choice

• Turtle Motors

• Kangaroo Autos