Question $15$ pts

Jason, age $14,$ was given a choice of $$80,000$ to be deposited in his account today or his parents would fund $80\%$ of lump sum cost of $4$ years of college. The first year of his college cost when he turns $18$ is expected to amount to exactly $$30,000$ a year $($i$.$e$.,$ in future dollar terms$).$ Which should he take given a $6\%$ after$-$tax investment return in both cases? Assume that the cost of education increases by $5\%$ per year.

Group of answer choices

$80\%$ of cost$,$ since its future value would be $$117,196$ while that of deposit would be $$75,749$

deposit, since its future value would be $$100,998$ while that of $80\%$ of cost would be $$93,757$

deposit, since its future value would be $$75,749$ while that of $80\%$ of cost would be $$72,719$

$80\%$ of cost$,$ since its future value would be $$93,757$ while that of deposit would be $$75,749$