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Sally wants to buy a Ford Mustang. The MSRP is ​$25,812. Ford offers a purchase financing plan with no money down and 36 end-of-month payments of ​$820.

Sally wants to buy a Ford Mustang. The MSRP is ​$25,812. Ford offers a purchase financing plan with no money down and 36 end-of-month payments of ​$820. Should she buy the car for cash or take​ Ford’s purchase​ financing? Assume that she has the cash and that she could invest her money and earn at least 5%.

What is the present value of all the​ payments?

6580

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