Denzel needs a new car. At the dealership, he finds the car that he likes. The dealership gives him two payment options:

$1.$ Pay $\backslash (\backslash$$ $28,500\backslash )$ today for the car.

$2.$ Pay $\backslash (\backslash$$ $2,500\backslash )$ at the end of each quarter for three years.

Required:

$1-$a$.$ Assuming Denzel uses a discount rate of $8\backslash \%($or $2\backslash \%$ quarterly$),$ calculate the present value.

$1-$b$.$ Which option gives him the lower cost?

Complete this question by entering your answers in the tabs below.

Req $1$ A

Assuming Denzel uses a discount rate of $\backslash (8\backslash \%\backslash )($or $\backslash (2\backslash \%\backslash )$ quarterly$),$ calculate the present Note: Use tables, Excel, or a financial calculator. Round your answers to $2$ decimal pla and PVA of $\backslash (\backslash$mathbf$\{\backslash$$ $1)\}\backslash )$