2. Discount Insurance has quoted you two options to insure your car for the next year. Under the first option, you have to pay a lump sum amount of $3,000 immediately. Under the second option, you will make monthly payments of $325, with the 1^st month free (i.e., the first payment is at the end of the second month). After bargaining for hours, Discount Insurance has also agreed to waive the 10^th payment (i.e., the payment at t = 11 is waived). If the appropriate discount rate is 7%, which option should you prefer? How much does the second option cost?