You can buy a car that is advertised for $15,480 on the following terms:

(a) pay $15,480 and receive a $2,480 rebate from the manufacturer;

(b) pay $430 a month for 3 years for total payments of $15,480, 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 $ =

c. Which is the better deal?