Kangaroo Autos is offering free credit on a new $14,000 car. You pay $1,400 down and then $420 a month for the next 30 m...
Kangaroo Autos is offering free credit on a new $14,000 car. You pay $1,400 down and then $420 a month for the next 30 months. Turtle Motors next door does not offer free credit but will give you $1,080 off the list price.
a. If the rate of interest is .75% a month, calculate the present value of the payments to Kangaroo Autos. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Present value $
b. Which company is offering the better deal?
-
Turtle Motors
-
Kangaroo Autos
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customers pay their bills and take full advantage of any credit
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