An ordinary annuity that pays $300 per year has a present value of $21,000. Assuming a cost of capital of 6%, how much would this value change if it were an annuity due?

Round your answer to 2 decimal places.

You need a new car and are considering leasing versus buying.

Lease Option: You could lease the car for 6 years starting today for $6,000 per year with the first payment being due at the end of year 1.

Purchase Option: You could purchase the vehicle today for $36,000 and resell it at the end of 6 years for $5,000.

If the cost of capital is 4%, what option would you select and why?