Mathematics, 15.04.2021 21:00 Jojoahmed99

You can buy a car that is advertised for $24,000 on the following terms: A.) pay $24,000 and receive a $2000 rebate from the manufacturer; B.) pay $500 a month for 4 years for total payments of $24,000, implying zero percent financing.

1.) Calculate the present value of the payments for option A if the interest rate is 1% per month.

2.) Calculate the present value of the payments for option B if the interest rate is 1% per month.

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