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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 $ on the following terms: a pay $ and receive a $ rebate from the manufacturer; b pay $ a month for years for total payments of $ implying zero percent financing.
Calculate the present value of the payments for option a if the interest rate is per month.
Calculate the present value of the payments for option b if the interest rate is per month.
Note: Do not round intermediate calculations. Round your answer to decimal places.
Which is the better deal?
multiple choice
Option a
Option b
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