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You can buy a car that is advertised for $ 2 6 , 8 8 0 on the following terms: ( a ) pay $

You can buy a car that is advertised for $26,880 on the following terms: (a) pay $26,880 and receive a $4,880 rebate from the manufacturer; (b) pay $560 a month for 4 years for total payments of $26,880, implying zero percent financing.
Calculate the present value of the payments for option (a) if the interest rate is 1.00% per month.
Calculate the present value of the payments for option (b) if the interest rate is 1.00% per month.
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Which is the better deal?
multiple choice
Option a
Option b

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