Question: Denzel needs a new car. At the dealership, he finds the car that he likes. The dealership gives him two payment options: $1.$ Pay $$27,500$ for the car today. $2.$ Pay $$2,500$ at the end of each quarter for three years. Required: $1-$a$.$ Assuming Denzel uses a discount rate of $8\%($or $2\%$ quarterly$),$ calculate the present value.

Denzel needs a new car. At the dealership, he finds the car that he likes. The dealership gives him two payment options:

$1.$ Pay $$27,500$ for the car today.

$2.$ Pay $$2,500$ at the end of each quarter for three years.

Required:

$1-$a$.$ Assuming Denzel uses a discount rate of $8\%($or $2\%$ quarterly$),$ calculate the present value.