Please show all of the factors used in the calculation PV, I/Y, N, etc. NOT just the answer. If the calculation involves an annuity, please indicate if it is an ordinary annuity or an annuity due.

A student owes the bookstore $900 and doesnt have the money to pay the full balance. The college offers two payment options:

1. Pay $300 today and $700 in two years. 2. Pay $1200 three years from today. Assuming the cost of money is 6% compounded annually, which alternative should be selected? Show all computations which support your selection.