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 $3,680each 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 a3%rate.

(a)

	Your answer is correct.

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 2
Present value	$	$

Marilyn should take option 1option 2.

SHOW ANSWER

Attempts: 1 of 1 used

(b) If Marilyn can invest the money at8%, 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 option 1option 2.

Attempts: 0 of 1 used

SAVE FO

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. (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 . Attempts: 0 of 1 used SAVE FO