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<br />### Since the payments are monthly, we need to convert the time from years to months. Two years is equal to $2 \times 12 = 24$ months.<br /><br />## Step 2: Calculate the total amount paid<br />### The total amount paid over 24 months is the monthly payment multiplied by the number of months: $ \$5 \times 24 = \$120$.<br /><br />## Step 3: Interpreting Present Value<br />### 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.