Determine the present value of monthly car payments of 5 for two years. a. 851.43 c. 136 b. 13191.06 d. 151

## Step 1: Convert years to months### Since the payments are monthly, we need to convert the time from years to months. Two years is equal to months.## Step 2: Calculate the total amount paid### The total amount paid over 24 months is the monthly payment multiplied by the number of months: 5 \times 24 = \ .## Step 3: Interpreting Present Value### The problem asks for the *present value* of the car payments. This is equivalent to asking the total value of the payments *today*. Since the payments are \$5 per month for 24 months, the present value is simply the sum of these payments.