Question: E9-17 (Algo) Computing a Present Value Involving an Annuity and a Single Payment LO 9-7 You have decided to buy a used car. The

E9-17 (Algo) Computing a Present Value Involving an Annuity and a Single

E9-17 (Algo) Computing a Present Value Involving an Annuity and a Single Payment LO 9-7 You have decided to buy a used car. The dealer has offered you two options: (EV of $1. PV of $1. EVA of $1, and EVA of 5) (Use the appropriate factor(s) from the tables provided.) a. Pay $590 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%. b. Make a one-time payment of $16,373, 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? Answer is not complete. 1- Present value a. 1- Which offer is clearly a better deal? Option b b.

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