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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 $3,640 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 $16,130. Marilyn can invest the money at a 5% rate. (a) Which option should Marilyn choose? (Round present value factor calculations to 4 decimal places, e.g. 1.2512 and final answers to O decimal places e.g. 58,971.) Option 1 Option 2 Present value Marilyn should take option 1 option 2
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