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 $3,780 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 $17,210. Marilyn can invest the money at a 4% rate. Don't show me this message again for the assignment Ok Cancel

(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 option 1option 2.

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(b) If Marilyn can invest the money at 7%, 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

.