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%. Make a one-time payment of $14,906, due when you purchase the car. 1-a. Determine how much cash the dealer would charge in option (a). (Round your answer to 2 decimal places.) 1-b. In present value terms, which offer is clearly a better deal

a. $16,251.70

b. One time payment

Explanation:

The computation is shown below:

a. The present value of the car is

= Per month amount × PVIFA (2%, 20) + Additional amount × PVIF (2%, 20)

= $500 × 16.3514 + $12,000 × 0.6730

= $8,175.70 + $8,076

= $16,251.70

Refer to the PVIFA and PVIF table

b. As we can see that the one time payment is $14,906 and the present value is $16,251.70

So the better deal is one time payment as it contains the lesser amount compared to the present value

so they can see what that city is producing and to also see if they can some how get that product. like gold in africa.

answer; i believe the correct answer is energy star;