Exercise $5-13($Algo$)$ Present value; ordinary annuity $($LO $5-8)$

Denzel needs a new car. At the dealership, he finds the car that he likes. The dealership gives him two payment options:

Pay $$26,000$ today for the car.

Pay $$2,200$ at the end of each quarter for three years.

Required:

$1-$a$.$ Assuming Denzel uses a discount rate of $12\%($or $3\%$ quarterly$),$ calculate the present value.

$1-$b$.$ Which option gives him the lower cost?

Answer is complete but not entirely correct.

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$5$ of $12$

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