You have decided to buy a used car. The dealer has offered you two options:...
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You have decided to buy a used car. The dealer has offered you two options: FV of $ PV of $ FVA of $ and PVA of $ Note: Use the appropriate factors from the tables provided. Pay $ per month for months and an additional $ at the end of months. The dealer is charging an annual interest rate of percent. Make a onetime payment of $ due when you purchase the car. Required: a Determine how much cash the dealer would charge in option a Note: Round your intermediate calculations and final answer to decimal places. b In present value terms, which offer is a better deal?
You have decided to buy a used car. The dealer has offered you two options: FV of $ PV of $ FVA of $ and PVA of $
Note: Use the appropriate factors from the tables provided.
Pay $ per month for months and an additional $ at the end of months. The dealer is charging an annual interest rate of percent.
Make a onetime payment of $ due when you purchase the car.
Required:
a Determine how much cash the dealer would charge in option a
Note: Round your intermediate calculations and final answer to decimal places.
b In present value terms, which offer is a better deal?
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