Ayratonia, a working project manager and promising musician, wants to purchase a new guitar and case for $$9700.$ When they learned of this opportunity, the grandparents provided a gift of $$2400.$ Ayratonia decided that there are two options for the actual purchase. Determine which option has the lower WACC now. $($Round the final answer to two decimal places.$)$

$1.$ Add the $$2400$ to a current investment portfolio yielding an average of $8\mathrm{.}13\%$ per year $($first dividend is received one year after the initial purchase$)$ and borrow the entire amount at a rate of $5\mathrm{.}78\%$ per year.

$2.$Use the $$2400$ gift and borrow the remaining amount at a rate of $5\mathrm{.}20\%$ per year.

which has a lower WACC at $\%$ per year.