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Marilyn's parents have agreed to help her purchase a new car upon graduation in four years. They have given her two choices. The first choice
Marilyn's parents have agreed to help her purchase a new car upon graduation in four years. They have given her two choices. The first choice is that they will give her $3,680 each year for the next four years for her to invest herself. The second choice is that they will wait four years and give her $16,510. Marilyn can invest the money at a 3% rate. (a) Your answer has been saved. See score details after the due date. Which option should Marilyn choose? (Round present value factor calculations to 4 decimal places, e.g. 1.2512 and final answers to 0 decimal places e.g. 58,971.) Option 1 Option 1 Option 2 Option 2 13049 $ 13583 Present value $ Marilyn should take option 2 : Attempts: 1 of 1 used (b) If Marilyn can invest the money at 8%, which options should she choose? (Round present value factor calculations to 4 decimal places, e.g. 1.2512 and final answers to 0 decimal places e.g. 58,971.) Option 1 Option 2 $ Present value Marilyn should take
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