Calculate the present value of the payments for option

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You can buy a car that is advertised for $16,560 on the following terms: (a) pay $16,560 and receive a $2,560 rebate from the manufacturer; (b) pay $460 a month for 3 years for total payments of $16,560, implying zero percent financing.

a. Calculate the present value of the payments for option (a), if the interest rate is .75% per month.

b. Calculate the present value of the payments for option (b), if the interest rate is .75% per month.

Reference no: EM131874148

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