You can buy a car that is advertised for $14,400 on the following terms: (a) pay $14,400 and receive a $2,400 rebate from the manufacturer; (b) pay $400 a month for 3 years for total payments of $14,400, implying zero percent financing.

a. Calculate the present value of the payments for option (a) if the interest rate is .75% per month.

Present Value _____________

b. Calculate the present value of the payments for option (b) if the interest rate is .75% per month. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Present Value _______________