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Denzel needs a new car. At the dealership, he finds the car that he likes. The dealership gives him two payment options: 1. Pay $25,000
Denzel needs a new car. At the dealership, he finds the car that he likes. The dealership gives him two payment options: 1. Pay $25,000 for the car today, 2. Pay $2.000 at the end of each quarter for three years. Required: 1-0. Assuming Denzel uses a discount rate of 12% (or 3% quarterly), calculate the present value (Ey of $1. P.O.S1. EVA S1 and EVA of $.1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) Present Value Option 1 Option 2 25,000 00 1.42356 1-b. Which option gives him the lower cost? Option 2 Option 1 The four people below have the following investments. Jerry Elaine George Kramer Invested Interest Amount Rate $12,680 12% 15,600 8 22,600 7 18,660 9 Compounding Quarterly Semiannually Annually Annually Required: 1-a. Calculate the future value at the end of five years. (EVOL $1. PV of S1, EVA L$1, and PVA of $1) (Use appropriate factor(s) the tables provided. Round your answers to 2 decimal places.) Jerry Elaine George Kramer Future Value $ 22,757 00 23.091 81 31.697 67 28,618.40 1-b. Who has the greatest investment accumulation
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