your friend, has a $1,200 overdue debt for medical books and supplies at Joe's Bookstore. She has only $400 in her checking account and doesn't want her parents to know about this debt. Joe's tells her that she may settle the account in one of two ways since she can't pay it all now: 1.) Pay $400 now and $1,000 when she completes her residency, two years from today. 2.) Pay $1,600 one year after completion of residency, three years from today. Which alternative should she choose?