Quick Check You go into the car dealership and want to buy a Honda Accord. They give you two alternative PAY CASH: Cash price is $24,020 FINANCE CAR: Credit terms: $611 per month for 48 months You can borrow from your bank at 6% interest (0.5% per month). Use the annuity formula to figure which is the better deal. What do you think happened? (Hint: extended warranty is $2000 and undercar sealant is $700) a. Better to pay cash by $2700 (present value) b. Better to pay cash by $2000 c. Better to finance by $2000 d. Better to finance by $2700