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

Pay $$26,000$ today for the car.

Pay $$2,200$ 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?

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.

Note: Use tables, Excel, or a financial calculator. Round your answers to $2$ decimal places. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ and PVA of $$1)$

$\backslash$table$[[,$Present Value$],[$Option $1,$$$,26,000\mathrm{.}00$