A businessman wants to buy a truck. The dealer offers to sell the truck for either (i) $120,000 now, or (ii) five yearly payments of $30,000 at the end of each year. If the businessman does not have enough cash but can get a loan from the bank at 7% interest rate, which offer should he choose from the dealer?

Option (i) because the dealer charges 10.67%

Option (ii) because the dealer charges 10.67%

Option (i) because the dealer charges 7.93%

Option (ii) because the dealer charges 7.93%

Option (ii) because the dealer charges 10.11%