Marilyn's 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 $3,890 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 $17,500. Marilyn can invest the money at a 3% rate.

If Marilyn can invest the money at 8%, 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.)

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Optlon 1 Optlon 2 Present value Marilyn should take option 1option 2