You can buy an advertised car for $25,440 under the following conditions: 

(a) pay $25,440 and get $5,440 off the manufacturer;

 (b) pay $530 per month for 4 years for a total of $25,440 in zero percent financing.

A.	If the interest rate is 1.00% per month, calculate the present value of the payments for option (a).

value today

$

B.	If the interest rate is 1.00% per month, calculate the present value of the payments for option (b). (Do not round intermediate calculations. Round your answer to 2 decimal places.)

value today

$

C.

Which is the better deal?

	option b
	Option one