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You have decided to buy a used car. The dealer has offered you two options:...

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Accounting

You have decided to buy a used car. The dealer has offered you two options: (FV of $1, PV of $1, FVA of $1, and PVA of $1)
Note: Use the appropriate factor(s) from the tables provided.
Pay $500 per month for 20 months and an additional $12,000 at the end of 20 months. The dealer is charging an annual interest rate of 24 percent.
Make a one-time payment of $14,906, due when you purchase the car.
Required:
1-a. Determine how much cash the dealer would charge in option (a).
Note: Round your answer to 2 decimal places.
1-b. In present value terms, which offer is a better deal?

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