1. You just got a job. You ask for a loan from your parents to pay for day to day expenses. Your parents agreed to lend you the money if you agree to pay them back within six months at an interest rate of 3%. You can pay them $100 at the end of the first two months, $125 for months 3 and 4 and $150 for months 5 and 6. Calculate the present value.

1. $695.03 b) $671.81 c) $765.35 d) $742.98