00 8 On Joe Martin's graduation from college, Joe's uncle promised him a gift of $12,700 in cash or $830 every quarter for the next 5 years after graduation. Assume money could be invested at 8% compounded quarterly. (Use Table 13.2.) a. Calculate the present value of options. (Do not round intermediate calculations. Round your answers to the nearest cent.) Present value Skipped Option 1 Option 21 b. Which offer is better for Joe? O Option 2 O Option 1 TABLE 13-2 Present value of an annuity of $1 Period 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 1 09804 0.9709 0.9615 09524 2 1.9416 19135 3 2.8839 1.8861 2.8286 27751 09434 09346 18504 18334 1.9080 27232 2.6730 26243 0.9259 09174 09091 0.9009 08929 0.8850 1.7833 2.5771 1.7591 1.7355 1.7125 1.6901 1.6681 25313 2.4869 24437 2.4018 2.3612 4567 38077 8 9 10 11 9.7868 12 10.5753 13 113483 14 3.7171 3.6299 3.5459 3.4651 47134 4.5797 4.4518 43295 5.6014 54172 52421 50767 49173 4.7665 64720 62303 6.0021 57864 55824 53893 5.2064 7.3265 7.0197 6.7327 64632 62008 59713 57466 8.1622 77861 7.4353 71078 68017 GS152 8.9826 85302 8.1109 77217 73601 10236 9.2526 87605 83064 7.8860 9.9540 93851 88632 83838 10.6350 00856 93936 88527 12.1062 11.2961 10.5631 9.8986 9.2960 33872 3.3121 42124 4.1002 3.9927 4.6220 62469 67101 64177 61446 7.1300 7.5361 15 12.8492 11.9379 11.1184 10.3796 9.7122 16 135777 12.5611 11.6523 10.8378 10.1050 74987 73427 B.3576 7.9038 7.4860 7.1034 87455 8.2442 9.1079 8.5595 94406 8.8514 68052 6.4951 7.1607 68137 17 14.2918 13.1661 12.1657 11.2741 18 14.9920 137535 19 156784 14.3238 20 16.3514 14.8775 25 195234 17.4131 12.6593 11.6896 13.1330 12.0853 13.5903 12.4622 15.6221 14.0939 30 40 50 22.3964 19.6004 17.2920 153724 27.3554 23.1148 19.7928 17.1591 31.4236 10.4773 97632 10.8276 10.0591 11.1581 10.3356 114699 105940 127834 11.6536 137648 12.4090 15.0463 133317 257298 21.4822 18.2559 157619 138007 9.1216 937 19 11.2578 11.9246 12.2335 3.2397 3.1699 3.1024 3.0373 29745 3.8897 3.7908 36959 3.6048 35172 4.4859 4.3553 4.2305 4.1114 39975 5.0330 4.8684 47122 45638 4.4226 55348 53349 5.1461 4.9676 47988 59952 57590 55370 5.3282 51317 58892 5.6502 84262 62065 59377 56869 64924 61944 59176 67409 6.4235 6.1218 7.7862 73667 6.9819 6.6292 6.3025 8.0607 7.6061 7.1909 68109 64624 8.3126 7.8237 73792 6.9740 6.6030 85436 8.0216 7.5488 7.1196 67291 8.7556 2014 7.7016 7.2497 6.8999 9.6036 19901 8.3649 7.0393 7.3658 6.9380 98181 9.1285 85136 7.9633 74694 70248 10.6748 98226 90770 4217 7.8431 7.3300 102737 94269 86938 8.0552 107574 9.7790 89511 82430 10.9617 99148 90417 83045 7.4957 7.6344 76752