Testbank Exercise 2 Marilyns 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 $3,600 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 $16,350. Marilyn can invest the money at a 3% rate.

(a) 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 .