Kangaroo Autos is offering free credit on a new $12,500 car. You pay $1,700 down and then $360 a month for the next 30 months. Turtle Motors next door does not offer free credit but will give you $1,050 off the list price. a. If the rate of interest is 0.92% a month, calculate the present value of the payments to Kangaroo Autos. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. Which company is offering the better deal? multiple choice Kangaroo Autos Turtle Motors
Kangaroo Autos is offering free credit on a new $12,500 car. You pay $1,700 down and then $360 a month for the next 30 months. Turtle Motors next door does not offer free credit but will give you $1,050 off the list price. a. If the rate of interest is 0.92% a month, calculate the present value of the payments to Kangaroo Autos. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. Which company is offering the better deal? multiple choice Kangaroo Autos Turtle Motors
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 14P
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Kangaroo Autos is offering free credit on a new $12,500 car. You pay $1,700 down and then $360 a month for the next 30 months. Turtle Motors next door does not offer free credit but will give you $1,050 off the list price.
a. If the rate of interest is 0.92% a month, calculate the present value of the payments to Kangaroo Autos. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
b. Which company is offering the better deal?
multiple choice
-
Kangaroo Autos
-
Turtle Motors
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