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

1. Pay $25,500 today for the car.
2. Pay $2,100 at the end of each quarter for three years.

Required:

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

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