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

Pay $$35,000$ for the car today.

Pay $$4,000$ at the end of each quarter for three years.

Required:

$1-$a$.$ Assuming Denzel uses a discount rate of $12\%($or $3\%$ quarterly$),$ calculate the present value.

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

Answer is complete but not entirely correct.

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

Assuming Denzel uses a discount rate of $12\%($or $3\%$ quarterly$),$ calculate the present value. $($FV of $$1,PV$ of $$1,$ FVA of $$1,$ and PVA of $$1)($Use tables, Excel, or a financial calculator. Round your answers to $2$ decimal places.$)$

$\backslash$table$[[,$Present Value$],[$Option $1,35,000\mathrm{.}00$