12. Suppose that you can subscribe to a magazine using either a one-year rate of $27, a two-year rate of $52, a three-year rate of $65, or a four-year rate of $100. If want to receive this magazine for four years and if your opportunity cost of funds is 3.25%, which rate offers the lowest cost?

a. A four-year subscription costing $100 and paid immediately.

b. Four one-year subscriptions, of $27 each, paid at the beginning of each year.

c. A two-year subscription paid immediately, costing $52, followed by another two-year subscription costing $52 and paid at the beginning of the third year.

d. A one-year subscription paid immediately, costing $27, followed by a three-year subscription costing $65 and paid at the beginning of the second year.

e. There is not enough information provided to answer this question.