Kangaroo Autos is offering free credit on a new $13,500 car. You pay $1,500 down and then $400 a month for the next 30 months. Turtle Motors next door does not offer free credit but will give you...

Kangaroo Autos is offering free credit on a new $13,500 car. You pay $1,500 down and then $400 a month for the next 30 months. Turtle Motors next door does not offer free credit but will give you $1,070 off the list price.

a.If the rate of interest is 0.70% 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

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  Turtle Motors

  
  
  
  


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  Kangaroo Autos