Denger E9-17 (Algo) Computing a Present Value Involving an Annuity and a Single Payment LO 9-7You have decided to buy a used car. The dealer has offered you two options: (FV of $1, PV of $1, FVA of $1, and PVA of $1)Note: Use the appropriate factor(s) from the tables provided.a. Pay $690 per month for 25 months and an additional $12,000 at the end of 25 months. The dealer is charging an annual interestrate of 24 percent.b. Make a one-time payment of $19,436, due when you purchase the car.Required:1-a. Determine how much cash the dealer would charge in option (a).Note: Round your intermediate calculations and final answer to 2 decimal places.1-b. In present value terms, which offer is a better deal?1-a. Present value1-b. Which offer is a better deal?× Answer is complete but not entirely correct.$Option b25,471.19 X

Present value refers to the function used under time, value of money for calculating the present…

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: (FV of $1, PV of $1, FVA of $1, and PVA of $1) Note: Use the appropriate factor(s) from the tables provided. a. Pay $690 per month for 25 months and an additional $12,000 at the end of 25 months. The dealer is charging an annual in rate of 24 percent. b. Make a one-time payment of $19,436, due when you purchase the car. Required: 1-a. Determine how much cash the dealer would charge in option (a). Note: Round your intermediate calculations and final answer to 2 decimal places. 1-b. In present value terms, which offer is a better deal?