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: 1. Pay $28,000 today for the car. 2. Pay $2,600 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? Complete this question by entering your answers in the tabs below. Assuming Denzel uses a discount rate of 12% (or 3% quarterly), calculate the present value. Denzel needs a new car. At the dealership, he finds the car that he likes. The dealership gives him two payment options: 1. Pay $28,000 today for the car. 2. Pay $2,600 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? Complete this question by entering your answers in the tabs below. Which option gives him the lower cost