Financing a Car Purchase You have decided to buy a new carl The annual interest rate is 12%. There car dealer offers 3 options to you: an all-cash purchase and two payment (or financing) plans. How do you evaluate these three options? Option 1 $14,906 due today Option 2: Pay $1,000 per month for 20 months Option 3. Pay $500 per month for 20 months and $10,000 at the end of the 20th month . Multiple Choice None of the other statements is true To evaluate option 2, you use i 12% and n=20 to find the PV foctor of an annuity To evaluate option 3. you use -12% and n=20 to find the FV factor of $1 and the FV factor of an annuity You choose the option that maximizes the present value You choose the option that maximizes the future Value