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Calculating the Downpayment on a Car

CORPFN-LFE3AH

The salesperson at the car showroom offers, Buy this car for \$28,000 cash or, with appropriate downpayment, pay \$500 per month for 60 months at 5% (annual) interest.

Assuming that the salesperson does not offer a free lunch (i.e., the deal is not for free), calculate the appropriate downpayment.

A

\$18,535

B

\$2,023

C

\$2,000

D

\$1,505