Sally wants to buy a Ford Mustang. The MSRP is

$27,917.

Ford offers a purchase financing plan with no money down and

36

end-of-month payments of

$860.

Should she buy the car for cash or take Ford's purchase financing? Assume that she has the cash and that she could invest her money and earn at least

3%.

What is the present value of all the payments?

$nothing

(Round to the nearest cent.)

Which of the following statements is true?(Choose the best response.)

A.Sally should

borrow money

to buy the car because its present value is lower.

B.Sally should

borrow money

to buy the car because its present value is higher.

C.Sally should

pay cash

to buy the car because its present value is lower.

D.Sally should

pay cash

to buy the car because its present value is higher.